In Order for a Firm to Face a Perfectly Elastic

question 109

Multiple Choice

In order for a firm to face a perfectly elastic demand curve,it must

• A)be a large firm selling a standardized product
• B)be a small producer selling a standardized product
• C)be a small producer;its product may or may not be standardized
• D)be a large producer selling a non-standardized product
• E)sell a standardized product,but the size of the firm is irrelevant

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Definitions:

Door-In-The-Face

A persuasion technique where a large, unreasonable request is made first, followed by a smaller, more reasonable request.

Lowballing

A sales and negotiation tactic where an initial, lower price is offered to entice a buyer, before it is subsequently raised once the buyer is interested or committed.

Mere Exposure

A mental effect where individuals grow fond of things simply because they are accustomed to them.

Reciprocal Helping

A cooperative behavior where an individual helps another with the expectation that the favor will be returned in the future.