In Perfect Competition,the Demand Curve Facing a Firm Is a Horizontal

question 221

Multiple Choice

In perfect competition,the demand curve facing a firm is a horizontal line at the market price because

• A)marginal revenue equals total revenue
• B)of the law of demand
• C)price always exceeds average total cost
• D)marginal cost equals average cost
• E)the firm is a price taker

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Definitions:

Economic Well-being

Refers to the overall quality of life based on financial stability, access to resources, and the ability to meet basic needs.

Transnational Corporations

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Globalization

The process of interaction and integration among people, companies, and governments worldwide, often driven by trade and investment and aided by information technology.

Anti-globalization Movement

A social movement that opposes the global integration of economies, arguing that it increases inequality within and between nations and threatens environmental and cultural diversity.