We Expect the Demand Curve in the Perfectly Competitive Industry

question 17

Multiple Choice

We expect the demand curve in the perfectly competitive industry to be

• A)negatively sloped.
• B)vertical.
• C)horizontal.
• D)perfectly elastic.

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Definitions:

Bankruptcy

A legal status of a person or entity that cannot repay the debts it owes to creditors, often leading to a legal process for debt relief.

Shelter Principle

The principle that when an item is transferred, the transferee acquires all the rights the transferor had to the item.

Marketability

The ease with which a product or service can be sold in the market due to its demand, utility, and competitive pricing.

Instruments

Legal or formal documents such as contracts, wills, or deeds that establish rights, duties, or agreements.