Why is a perfectly competitive firm said to be a price taker?
a. It produces such a good which is not produced by any other firm in the market.
b. It faces a downward sloping market demand curve.
c. The firm's individual production is insignificant relative to the production in the industry.
d. There are no barriers to the entry of new firms in the industry.
e. The firm's marginal-revenue curve is downward sloping.
c
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According to modern Keynesian analysis, an increase in aggregate demand leads to a higher price level because the
A) aggregate demand curve is upward sloping. B) short-run aggregate supply curve is upward sloping. C) aggregate demand curve is upward horizontal. D) short-run aggregate supply curve is vertical.
Growth in employment occurs only because of increases in labor demand due to government hiring
a. True b. False