The Horizontal Demand Curve Facing an Individual Firm in a Perfectly

question 53

Multiple Choice

The horizontal demand curve facing an individual firm in a perfectly competitive market:

• A) violates the law of demand, which states that demand curves slope downward.
• B) is a reflection of the firm's small size relative to the total market.
• C) is maintained only with the help of high barriers to entry.
• D) is a reflection of the inelastic demand for its product.

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Definitions:

Realistic Group Conflict Theory

A theory proposing that intergroup conflicts arise from competition between groups for limited resources.

Intergroup Anxiety Theory

A framework suggesting that anxiety experienced in interactions between members of different social or cultural groups can lead to negative attitudes and behaviors.

Stereotype Threat Theory

A social psychological theory that suggests individuals may underperform in situations where they fear being judged based on stereotypes about their social group.

Realistic Group Conflict Theory

A theory suggesting that intergroup conflict arises from competition over limited resources, leading to prejudice and discrimination.