If a Firm Produces in a Perfectly Competitive Output Market

question 20

Multiple Choice

If a firm produces in a perfectly competitive output market,

• A)then it demands its resources in perfectly competitive input markets
• B)then it demands labor in a perfectly competitive labor market
• C)the type of market in which it demands labor may be perfectly competitive or imperfectly competitive
• D)the labor demand curve is the same as its product demand curve
• E)the labor demand curve facing the firm is perfectly elastic

---

Definitions:

Population Parameter

A characteristic or measure that describes an aspect of an entire population, such as its mean or standard deviation.

Sampling Error

The difference between the sample statistic and the actual population parameter, which occurs by chance because the sample is not a perfect representation of the population.

Inspiratory Reserve Volume

The maximum amount of air that can be inhaled after a normal inhalation.

Tidal Volume

The amount of air moved into or out of the lungs during normal breathing.