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.

---

Definitions:

Polypeptides

Chains of amino acids linked by peptide bonds, forming the basic structure of proteins.

Triglyceride

A triglyceride is a type of fat (lipid) found in the blood, originating from the diet and stored in fat cells, used by the body for energy.

Fatty Acid

Long hydrocarbon chains that are a major component of fats and are used in cells as a source of energy.