Pineapple growing is a perfectly competitive industry. How does the market demand curve for pineapples compare to the demand curve for an individual pineapple grower?
What will be an ideal response?
The market demand curve for pineapples is downward sloping. The demand curve for an individual pineapple grower is a horizontal line. In other words, the demand faced by an individual grower is perfectly elastic whereas the market demand is not perfectly elastic.
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Adverse selection is a barrier to financing global growth because
A) of the differences between financing using loans, portfolio investment and foreign direct investment. B) if investors have trouble identifying high-risk firms they may be unwilling to lend funds to creditworthy firms. C) firms sometimes have trouble determining whether they need funds or not. D) there is the possibility that the funds are used for riskier behavior than the lender agreed to.
Antitrust action in the United States
a. has followed an inconsistent pattern of enforcement b. has always provided specific guidelines for acceptable behavior c. applies only to natural monopolies d. involves suing a competitive firm for changing its prices e. provides protection to those in regulated industries