A perfectly elastic demand function
A. is characteristic of an individual firm operating in a perfectly competitive market.
B. shows that the individual firm can increase sales by lowering the price of output.
C. has a marginal revenue that is always decreasing.
D. shows that a consumer is willing to pay any amount for the product.
Answer: A
Economics
You might also like to view...
In 2005-2006, the Fed increased interest rates in an attempt to halt inflation. What was the most likely effect of raising interest rates on velocity?
a. It will decrease. b. It will increase. c. It will remain constant. d. Velocity is unrelated to saving accounts.
Economics
Other things the same, what happens in the short run to the price level and quantity of output when the aggregate demand curve shifts to the left?
Economics