Which of the Following Statements Is Correct About the Demand

question 130

Multiple Choice

Which of the following statements is correct about the demand curve of the perfectly competitive industry?

• A) The demand curve of the perfectly competitive industry is horizontal as are the demand curves facing the individual firms.
• B) The market demand curve of perfect competition is vertical because the individual consumers are buying a homogeneous product.
• C) The market demand curve of the perfectly competitive industry is downward sloping while the demand curve facing an individual firm is horizontal.
• D) The market demand curve of the perfectly competitive industry is downward sloping, so the demand curves of the individual firms are also downward sloping.

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Definitions:

X-bar Control Chart

A statistical tool used in quality control processes to monitor the mean (average) of a quality characteristic over time.

R-chart

A type of control chart used to monitor the range of variability within a process over time.

Central Limit Theorem

A statistical theory stating that the distribution of sample means approximates a normal distribution as the sample size becomes larger, regardless of the population's distribution.

Normal Distribution

A statistical distribution where data forms a symmetrical bell-shaped curve around the mean, representing how many natural phenomena are distributed.