When There Are Many Buyers and Sellers of a Good

question 87

Multiple Choice

When there are many buyers and sellers of a good and the product sold is identical across firms,:

• A) the demand curve for each firm's output is perfectly elastic.
• B) the industry demand curve is perfectly elastic.
• C) the demand curve for each firm's output is perfectly inelastic.
• D) the industry demand curve is perfectly inelastic.

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Definitions:

Efficiency Of Investment

The degree to which invested resources are used optimally to achieve desired outcomes without waste.

Beneficiary

An individual or entity entitled to receive benefits or profits from a will, trust, insurance policy, or other arrangements designed to distribute assets.

Economic Profit

The profit a company makes after deducting both its explicit (direct) and implicit (indirect) costs.

Allocation Of Resources

The process by which resources are distributed for the production of goods and services, usually determined by market forces in a free market, or by government decisions in a planned economy.