A Perfectly Elastic Demand Curve Implies That the Firm

question 283

Multiple Choice

A perfectly elastic demand curve implies that the firm

• A)must lower price to sell more output.
• B)can sell as much output as it chooses at the existing price.
• C)realizes an increase in total revenue that is less than product price when it sells an extra unit.
• D)is selling a differentiated (heterogeneous)product.

---

Definitions:

Blind Spot

The point in the visual field that lacks light-detecting photoreceptor cells, located where the optic nerve exits the eye, creating a spot where no image is perceived.

Rods and Cones

Rods and cones are the two types of photoreceptor cells found in the retina of the eye, responsible for vision under low and bright light, respectively.

Inferior Oblique

A muscle in the eye that contributes to upward and outward eye movement.

Extrinsic Eye Muscles

Six muscles that control eye movement and position, enabling complex motions and stabilization of gaze.