When Significant Changes in the Output of a Single Firm

question 35

Multiple Choice

When significant changes in the output of a single firm have no perceptible effect on the industry price or output,the demand curve facing the firm is

• A) of unitary elasticity.
• B) horizontal.
• C) perfectly price inelastic.
• D) downward sloping.
• E) subelastic.

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Definitions:

Perceptual Constancy

is the psychological phenomenon in which the perception of an object remains unchanged despite changes in the sensory input, such as lighting, distance, or angle.

Angle

A figure formed by two rays, called the sides of the angle, sharing a common endpoint, known as the vertex of the angle.

Size Constancy

A perceptual phenomenon where the perceived size of an object remains constant despite changes in the distance from which it is viewed, due to mental adjustments of its size.

Perceived Size

The subjective interpretation of an object's dimensions, which can be influenced by context, background, and comparison to other objects.