The Perfectly Elastic Demand Curve Faced by a Competitive Firm

question 89

Multiple Choice

The perfectly elastic demand curve faced by a competitive firm means that

• A)it could actually sell an infinite amount of output at the going price.
• B)the firm could increase total revenue by increasing the price.
• C)as the firm expands output its marginal revenue will fall.
• D)total revenue is constant regardless of quantity produced.
• E)the product's price will be unaffected by any realistic change in the firm's level of output.

---

Definitions:

Human Resource Forecasting Process

The process of estimating the future human resource needs of an organization, taking into account business demand and the current workforce's skill set.

Macro Perspective

A broad approach in analysis that considers the larger-scale processes and structures affecting societies, economies, or industries.

Micro Perspective

An approach focusing on small scale interactions or individual elements within a system, in contrast to macro perspectives which look at larger scale patterns or structure.

Nominal Group Technique

A structured method for group brainstorming that encourages contributions from everyone in the group to identify solutions to problems.