This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why is it that the industry demand curve slopes downward when the demand curves faced by individual ... (Read 143 times)

Kthamas

  • Hero Member
  • *****
  • Posts: 546
on: Jun 29, 2018
Why is it that the industry demand curve slopes downward when the demand curves faced by individual firms in perfectly competitive markets are horizontal?
 
  What will be an ideal response?

Question 2

Refer to Table 2-2. Assume Billie's Bedroom Shop only produces pillows and blankets. Billie faces ________ opportunity costs in the production of pillows and blankets.
 
  A) negative B) constant C) decreasing D) increasing


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

rachel

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 29, 2018
Answer to Question 1

Every firm in a competitive market is so small that it can increase production without affecting the price of the good. Therefore a firm in a perfectly competitive market faces a perfectly elastic demand curve. The market demand curve is downward-sloping, which reflects the law of demand: consumers will purchase higher quantities of a good at lower prices and lower quantities at higher prices.

Answer to Question 2

B


Kthamas

  • Hero Member
  • *****
  • Posts: 546
Reply #2 on: Jun 29, 2018
Thank you :)


rachel

  • Sr. Member
  • ****
  • Posts: 323
Reply #3 on: Jun 29, 2018
Happy to help you


« previous next »
 

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

The titration curve of the buffer acetic acid (CH3COOH) The titration curve of the buffer acetic acid (CH3COOH)
Firing Rate of Individual SCN Neurons in a Tissue Culture Color bars have been added to emphasize th Firing Rate of Individual SCN Neurons in a Tissue Culture Color bars have been added to emphasize th
The downward movement of the piston draws the air–fuel mixture into the cylinder through the ... The downward movement of the piston draws the air–fuel mixture into the cylinder through the ...
Perfect logistic curves Perfect logistic curves
There are many ways for an individual to monitor his or her blood glucose level There are many ways for an individual to monitor his or her blood glucose level
Genome-wide SNP-based heritability for individual behavioral disorders Genome-wide SNP-based heritability for individual behavioral disorders
Video: How eudicots (true dicots) differ from monocots Animation

For a complete list of videos, visit our video library