A Perfectly Elastic Demand Function

question 205

Multiple Choice

A perfectly elastic demand function

• A) shows that a consumer is willing to pay any amount for the product.
• B) is characteristic of an individual firm operating in a perfectly competitive market.
• C) shows that the individual firm can increase sales by lowering the price of output.
• D) has a marginal revenue that is always decreasing.

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Definitions:

Ingroup-Outgroup Bias

The tendency to favor members of one's own group (ingroup) over those from different groups (outgroup).

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often accompanied by prejudice towards other groups.

Superordinate Goals

Objectives that require the cooperation of two or more parties with typically conflicting interests, thus promoting collaboration between them.

Dominate

To have control or exert power over; often implies overpowering or leading others in a particular context or situation.