Which of the following statements describes a perfectly competitive market under conditions of constant cost?
A) The market supply curve becomes perfectly elastic in the long run.
B) The market rarely experiences changes in the price and quantity sold in the short run.
C) If 50 units can be produced for $150, then 150 units can be produced for $350 and 200 units for $450.
D) The market rarely experiences changes in supply in response to changes in demand.
Answer: A) The market supply curve becomes perfectly elastic in the long run.
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How does inclusion of the current revenues and expenditures of the Social Security trust fund into the budget calculation affect the reported budget deficit of the federal government?
a. It increases the reported deficit. b. It reduces the reported deficit. c. It exerts no effect on the reported deficit. d. It increases the deficit during an economic boom but reduces it during a recession.
Which of the following formulas represents the marginal rate of technical substitution of labor for capital?
A. MPK/MPL B. -?L/?K C. ?K/?L D. MPL/MPK