Business College

n the theory of perfect competition, the assumptions of many buyers and sellers, the production of a homogeneous product, and the possession of all relevant information by buyers and sellers imply that the perfectly competitive firm a. has a demand curve that is perfectly inelastic. b. has a demand curve that is perfectly elastic. c. sets the price it wishes. d. has a demand curve that is downward sloping

Answers

Answer 1

Answer:

b. has a demand curve that is perfectly elastic. c. sets the price it wishes

Explanation:

Elasticity of demand is a measure of the degree of change in quantity demanded to changes in price.

For a perfectly elastic demand it means that an infinite quantity of a product will be required by consumers at a particular price. The perfectly elastic demand curve is usually horizontal.

In perfectly competitive markets elasticity of demand is perfectly elastic because there are many buyers and sellers, production of a homogeneous product, and the possession of all relevant information by buyers and sellers.

So prices between products tend to be the same

Related Questions

Other Questions
when 3.18 g of copper (||) oxide were carefully heated in a stream of dry hydrogen, 2.54 g of copper and 0.72 g of water were formed determine the number of moles of hydrogen atoms which combine with one mole of oxygen atoms Based on the passage, what does Reggie's response reveal about Georgia's actions throughout the passage? please help me !!!!!!!!!!!!!!!!!!!!!!!! An automobile assembly line operation has a scheduled mean completion time, , of minutes. The standard deviation of completion times is minutes. It is claimed that, under new management, the mean completion time has decreased. To test this claim, a random sample of completion times under new management was taken. The sample had a mean of minutes. Assume that the population is normally distributed. Can we support, at the level of significance, the claim that the mean completion time has decreased under new management Find the circumference of the circle. Round your answer to the nearest hundredth. Use 3.14 or 227 for .There's a picture of a circle with the radius of 21 cmPicture of the circle: When Marley was alive, how were he and Scrooge alike? NEED ASAPPPPThe linear equation below describes the graph of a line.4x 3y = -12 Which of these is a point on the graph of the line? 1 hundred 8 million 4 hundred 4 thousand translate the muslims destoried much of the greek kknowledge they found during their expansion true or false How much force would be needed topush a 22 kg box across the floor withan acceleration of 1.9 m/s^2? Assumethat there is a coefficient of friction of.17 between the box and the floor.Help me with this!!!!!!!its due in 10 minutes Abby spent 22 minutes working on her science project yesterday 34 minutes working on today. how many minutes did Abby spend working on her science project altogether Which sentence is punctuated correctly? (4 points)Our team won the championship, the state championship this year.Our team wonthe championshipthe state championship this year.Our team won the championship-the state championship-this year.Our team won, the championship the state championship, this year. Who were the other half that Jacob Riis referred to in his 1890 book How the Other Half Lives?A the factory ownersB the upper classC the working poorD the middle class which among the accounts or analyses do you consider the most convincing and reliable?why? how many times larger is 2.4 x 10^8 than 6 x 10^7? what is the avarage speed during kick 1 Please help ASAP 15 points How many kilometers is it around the world on foot and how many days does it take? do you have a phone number a. What is the decimal for 1 trillionth of a second?