The demand curve faced by a perfectly competitive firm

a. is the market demand curve
b. slopes downward
c. is perfectly elastic
d. is vertical
e. rises when market supply rises

C

Economics

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A perfectly competitive ebook publishing firm currently sells its ebook at the market price of $6. Its average total cost is $5.50. In this case:

a. since average total cost is less than the price, the firm will shut down. b. the firm has positive economic profits. c. the firm is losing money but will continue to operate. d. the firm has zero economic profits.

Economics

The expenses a company must pay before it can begin to produce and sell goods:

a. start-up costs b. merger c. patent d. monopoly e. deregulation

Economics