Solution Library

Demand Curve Of Firm In Competitive Market

Question

1. The firm in a competitive market faces a demand curve that is:

A) perfectly elastic.
B) downward sloping.
C) upward sloping.
D) perfectly inelastic.

2. Assume that P1>P2> AVC. If market price decreases from P1 to P2, then the competitive firm should:

A) reduce production.
B) shut down.
C) continue to produce at the same level of output.
D) increase production.

Summary

These multiple choice questions belong to Economics. The 1st question is about demand curve in competitive market and the 2nd question is about comparing the difference between prices and average variable cost.

Total Word Count NA

Download Full Solution

Comments

  • HWA
    Rasha

    this is a very good website

  • HWA
    maani

    I have 50 questions for the same test your page is showing only 28

  • HWA
    joeanne

    hi can you please help or guide me to answer my assignments. thanks

  • HWA
    joeanne

    hi can anyone help or guide me to my assignments. thanks

  • HWA
    Monik


  • HWA
    Cristina

    This solution is perfect ...thanks

  • HWA
    Janete

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA
    Sandeep

    Perfect bank of solution. 

  • HWA
    Oxana

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA
    Giuseppe

    works fine.