Which of the Following Statements Is Correct

question 335

Multiple Choice

Which of the following statements is correct?

• A)The demand curve for a purely competitive firm is perfectly elastic, but the demand curve for a purely competitive industry is downsloping.
• B)The demand curve for a purely competitive firm is downsloping, but the demand curve for a purely competitive industry is perfectly elastic.
• C)The demand curves are downsloping for both a purely competitive firm and a purely competitive industry.
• D)The demand curves are perfectly elastic for both a purely competitive firm and a purely competitive industry.

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Definitions:

Attribution Theory

A psychological theory focused on how individuals interpret events and how this relates to their thinking and behavior.

High Consensus

A situation where there is widespread agreement among members of a group or organization, often indicating uniformity of opinion or perspective.

External Attribution

The process of attributing the cause of an observed behavior or outcome to factors outside the individual, such as the situation or other people.

Self-Fulfilling Prophecies

Expectations about a situation or individual that elicit behaviors which make the prediction come true, reinforcing the original expectation.