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.

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Definitions:

Antagonist Drugs

Drugs that block or change the effects of an addictive drug, reducing desire for the drug.

Substance Dependence

A condition characterized by the compulsive use of a substance despite harmful consequences, often associated with tolerance and withdrawal symptoms.

Depressant Effects

describe the slowing down of brain function and reduction of neural activity, typically induced by certain medications, drugs, or substances.

Date-Rape Drug

Substances used to incapacitate someone in order to commit sexual assault.