The Perfectly Elastic Demand Curve Faced by a Competitive Firm

question 89

Multiple Choice

The perfectly elastic demand curve faced by a competitive firm means that

• A)it could actually sell an infinite amount of output at the going price.
• B)the firm could increase total revenue by increasing the price.
• C)as the firm expands output its marginal revenue will fall.
• D)total revenue is constant regardless of quantity produced.
• E)the product's price will be unaffected by any realistic change in the firm's level of output.

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Definitions:

Large-Scale Institutions

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Individual Interactions

The exchanges and communication between people, which can influence thoughts, feelings, and behaviors.

Sociological Approach

A method of studying society that focuses on understanding social structures, patterns, and relationships from a systematic and critical perspective.

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A feeling of disorientation and discomfort that one may experience when exposed to a foreign culture or social environment for the first time.