A Horizontal Demand Curve Exists For

question 127

Multiple Choice

A horizontal demand curve exists for:

• A) a monopoly, but not for a perfectly competitive firm.
• B) a perfectly competitive firm, but not for a monopoly.
• C) both a monopoly and a perfectly competitive firm.
• D) either a monopoly or a perfectly competitive firm, depending on the costs of production.

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Definitions:

Function

A relation between a set of inputs and a set of permissible outputs, often defined by an equation.

Inverse Function

A mathematical function that reverses the effect of another function, such that if the function f applied to an input x gives a result of y, then applying its inverse function to y gives the result x.

Function

An interrelation between a variety of inputs and a catalog of admissible outputs, with the requirement that every input is pinpointed to a unique output.

Composition

The process of combining two functions by applying one function to the result of another, typically notated as (f◦g)(x).