In Perfect Competition

question 96

Multiple Choice

In perfect competition

• A) the market demand curve and the individual's demand are identical.
• B) the market demand curve is perfectly inelastic while demand for an individual seller's product is perfectly elastic.
• C) the market demand curve is perfectly elastic while demand for an individual seller's product is perfectly inelastic.
• D) the market demand curve is downward sloping while demand for an individual seller's product is perfectly elastic.

---

Definitions:

Bonded

indicates a state of being secured by a bond, involving a financial guarantee or protection against losses.

Shirking

The act of avoiding or neglecting responsibilities, especially in the workplace, leading to reduced productivity or performance.

Incentive Contracts

Contracts that provide rewards for performance above a certain standard, encouraging higher levels of effort or achievement.

Monitoring

The process of supervising activities or individuals to ensure compliance, performance, or progress towards objectives.