A firm that is a price taker faces
A) an elastic supply curve.
B) an inelastic supply curve.
C) a perfectly elastic demand curve.
D) a perfectly inelastic demand curve.
E) an elastic but not perfectly elastic demand curve.
C
You might also like to view...
Analysts that favor a fast transition to market economies argue that China's success with a gradual transition is a special case because
A) its trade flows were relatively large. B) so much of its labor force was in agriculture. C) heavy industry already had a strong foothold when the transition began. D) its coastal areas were already relatively well developed. E) its labor force was relatively well educated.
Which of the following is true about a Sweezy oligopoly?
A. The marginal revenue function has an upward "jump" or "discontinuity." B. The marginal cost function has an upward "jump" or "discontinuity." C. The marginal revenue function has a downward "jump" or "discontinuity." D. The marginal cost function has a downward "jump" or "discontinuity."