Which of the Following Statements Is Not True for a Perfectly

question 153

Multiple Choice

Which of the following statements is not true for a perfectly competitive firm?

• A) A firm's demand curve is horizontal.
• B) The firm can influence its demand curve by advertising its product.
• C) The firm's demand curve is perfectly elastic.
• D) The market demand and supply curves determine the market price.

---

Definitions:

Production Possibilities

A graphical representation that shows the maximum number of goods or services that can be produced with a given set of resources and technology.

Law Of Comparative Advantage

An economic principle that states countries should specialize in producing goods for which they have a lower opportunity cost of production relative to other countries, leading to increased economic efficiency and trade benefits.

Gain From Trade

The benefits that entities receive from exchanging goods, services, or resources with others, often leading to an increase in overall welfare.

Law Of Comparative Advantage

A principle in international trade that states countries should specialize in producing goods for which they have a lower opportunity cost than their trading partners.