A Dominant Firm's Residual Demand Curve Is

question 11

Multiple Choice

A dominant firm's residual demand curve is

• A) the horizontal difference between the market demand curve and the supply curve of the fringe firms.
• B) the vertical difference between the market demand curve and the supply curve of the fringe firms.
• C) the demand curve left for the fringe firms after the dominant firm has determined an output level.
• D) None of the above.

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Definitions:

Post Hoc

Post hoc, short for "post hoc ergo propter hoc," is a logical fallacy that assumes a cause-and-effect relationship simply because one event follows another.

Ergo Propter Hoc

A logical fallacy meaning "therefore, because of this," suggesting a cause-and-effect relationship where none exists.

Fallacy

A mistaken belief, especially one based on unsound arguments or logical errors.

Fallacy Of Composition

The erroneous belief that what is true for the individual is necessarily true for the group as a whole.