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Sunny_sXe [5.5K]
3 years ago
6

QUESTION 25 A perfectly competitive firm faces a __________ demand curve. a. downward-sloping b. unit-elastic c. nonlinear d. pe

rfectly elastic e. perfectly inelastic
Business
1 answer:
Alexus [3.1K]3 years ago
5 0

Answer:

The correct answer is letter "D": perfectly elastic.

Explanation:

Perfect Competition is a theoretical market system where competition is at its highest level as possible. Perfectly competitive markets are characterized by:

  • <em>All companies offer an equivalent product.</em>
  • <em>All companies are price takers.</em>
  • <em>All companies have a fairly small market share.</em>
  • <em>Buyers have full quality and pricing knowledge.</em>
  • <em>The company has low barriers or no barriers to entering and leaving an industry .</em>

<em>Plotted in a graph, perfectly competitive goods have a horizontal curve. This is because at any given price any quantity can be demanded. Thus, the curve of perfectly competitive firms is </em><u><em>perfectly elastic</em></u><em>.</em>

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dybincka [34]

Answer:

unique prroducts

Explanation:

A product is a commodity when all units of production are identical, regardless of who produces them. However, to be a differentiated product, a company's product is different than those of its competitors. On the continuum between commodities and differentiated products are many degrees and combinations of the two.

6 0
3 years ago
Given the annual rate of economic growth, the "rule of 70" allows one toA) determine the accompanying rate of inflation.B) calcu
erik [133]

Answer:

B) calculate the number of years required for real GDP to double

Explanation:

The rule of 70 calculates the amount of time it takes for an investment to double.

Given the annual rate of economic growth, the rule of 70 calculates the number of years required for real GDP to double.

It is calculated as 70 / annual rate of economic growth.

I hope my answer helps you.

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The average annual income rises from $25,000 to $38,000, and the quantity of bread consumed in a year by the average person fall
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7 0
2 years ago
In September 2008, the stock market fell sharply and continued to perform poorly due to the financial crisis. How did this chang
GenaCL600 [577]

Answer:

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If you consider the economy as a whole, aggregate demand will fall, resulting in a decrease of aggregate supply, and an overall decrease of the GDP.

6 0
2 years ago
Suppose the incomes of buyers in a market for a particular inferior good decrease and there is also a reduction in input prices.
Natasha_Volkova [10]

Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

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5 0
3 years ago
Read 2 more answers
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