Which of the Following Statements Is Correct

question 47

Multiple Choice

Which of the following statements is correct?

• A)The demand curve for a perfectly competitive firm is perfectly elastic,but the demand curve for a perfectly competitive industry is downward sloping.
• B)The demand curve for a perfectly competitive firm is downward sloping,but the demand curve for a perfectly competitive industry is perfectly elastic.
• C)The demand curves are downward sloping for a perfectly competitive firm and a perfectly competitive industry.
• D)The demand curves are perfectly elastic for both a perfectly competitive firm and a perfectly competitive industry.

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Definitions:

Dividend Payout Ratio

A financial ratio that shows the percentage of a company's earnings paid out as dividends to shareholders.

Dividend Reinvestment Plans

Programs offered by corporations allowing investors to automatically reinvest dividends paid out by the stock into additional shares, potentially increasing their holdings over time.

New Stock

Shares that are issued for the first time by a company to the public in the primary market.

Open Market Purchase

The buying of shares of a company through the stock market by individuals or companies.