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:

GDP

Gross Domestic Product, the total value of all goods and services produced within a country in a given period.

Trade Deficit

A situation where a country's imports exceed its exports over a given period, leading to more money leaving the country than coming in.

Mixed Economy

An economic system combining elements of both capitalism and socialism, with some sectors privately owned and others controlled by the government.

Economy

The system by which goods and services are produced, distributed, and consumed within a particular country or region.