A Price-Taker Confronts a Demand Curve That Is

question 97

Multiple Choice

A price-taker confronts a demand curve that is:

• A)vertical at the market price.
• B)upward sloping.
• C)downward sloping.
• D)horizontal at the market price.

---

Definitions:

Marginal Productivity

The additional output generated by employing one more unit of a particular resource, while holding other inputs constant.

Returns to Scale

The rate at which production output increases in response to proportional increases in all inputs.

Average Cost

The average cost is the total cost of production divided by the number of units produced, reflecting the cost per unit of output.

Marginal Cost

The supplementary expenditure required to produce an extra unit of a product or service.