Which of the Following Statements Is Correct

question 1

Multiple Choice

Which of the following statements is correct?

• A) The demand curve of the perfectly competitive industry is elastic as are the demand curves facing the individual firms.
• B) The market demand curve of perfect competition is inelastic because the individual consumers are buying a homogeneous product.
• C) The market demand curve of the perfectly competitive industry is downward sloping while the demand curve of an individual firm is horizontal with a height equal to the product price.
• D) The market demand curve of the perfectly competitive industry is downward sloping, so the demand curves of the individual firms are also downward sloping.

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Definitions:

ANSI

The American National Standards Institute, a private non-profit organization that oversees the development of voluntary consensus standards for products, services, processes, systems, and personnel in the United States.

CSA

Canadian Standards Association, a not-for-profit organization that develops standards for a wide range of products and processes.

Front View

The view of an object as seen from the front, typically used in technical drawing to show the most details.

Projection Used

Refers to the method of projection adopted in technical drawing or design, such as orthographic, isometric, or perspective projection.