The Demand Curve for Each Seller's Product in Perfect Competition

question 39

Multiple Choice

The demand curve for each seller's product in perfect competition is horizontal at the market price because

• A)each seller is too small to affect market price.
• B)the price is set by the government.
• C)all the sellers get together and set the price.
• D)all the demanders get together and set the price.

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Definitions:

Taxpayers

Taxpayers are individuals or entities that are required by law to pay taxes to the government, based on their income, property, and other tax liabilities.

Tax Revenue

Income that is gained by governments through taxation, which is then used to fund public services and government obligations.

White Water Rafting

an adventurous outdoor activity which involves navigating rivers or waterways with varying degrees of rough water or rapids in a raft.

Unit Cost

The expenditure a business incurs in the production, storage, and distribution of an individual unit of a certain product or service.