Which of the following statements is valid when supply is perfectly elastic at a price of $4?
a. The elasticity of supply approaches infinity.
b. The supply curve is vertical.
c. At a price below $4, quantity supplied is infinite.
d. At a price above $4, quantity supplied is zero.
a
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Which of the following statements about voting is NOT true?
a. Voting theory posits that a majority vote by itself may indicate nothing at all about society's preferences. b. In those situations where voting does occur, it can have imperfections, just like markets might. c. There will be occasions when voters can advance their individual interests by misrepresenting their preferences or purchasing each other's votes. d. It is possible to devise a voting method in which the outcomes always have certain desirable properties for all possible sets of voter preferences.
In a perfectly competitive market, positive economic profits act to
A) attract new entrants into the industry. B) drive potential competitors away from the industry. C) prevent reinvestment on the part of firms within the industry. D) signal resource owners elsewhere not to invest their capital in this industry.