The Demand Curve Facing a Perfectly Competitive Firm Is _____

question 42

Multiple Choice

The demand curve facing a perfectly competitive firm is _____

• A)vertical at the equilibrium quantity.
• B)upward sloping.
• C)a straight line through the origin.
• D)a horizontal straight line at the market price.
• E)downward sloping.

---

Definitions:

Equivalent Annual Cost

A financial analysis tool used to compare the annual costs of alternatives with different lifespans to assess which is more cost-effective.

Internal Rate of Return

A financial metric used to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows equal to zero.

Erosion

In finance, erosion refers to the gradual reduction of assets, earnings, or investment value over time.

Future Cash Flows

Predicted income or expenses expected to be generated or incurred in the future.