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

Author Question: Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to make ... (Read 44 times)

Zulu123

  • Hero Member
  • *****
  • Posts: 525
on: Apr 19, 2019

Question 1

A perfectly elastic demand curve implies that, 
ceteris paribus


◦ a firm can sell more by lowering its price.
◦ if a firm raises its price above the market price, quantity demanded will equal zero.
◦ the price a firm charges is irrelevant, as it will sell the same amount regardless of the price charged.
◦ a firm can raise its price and not lose all its customers.

Question 2

Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to make excess profits in the long run?


◦ the fact that wool producers are ʺprice takersʺ
◦ the assumption that wool producers in the industry do not ʺdifferentiateʺ their products
◦ the fact that the demand curve facing each wool producer is perfectly elastic
◦ There is free entry into the wool industry.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Zulu123 on Apr 19, 2019

mcinincha279

  • Sr. Member
  • ****
  • Posts: 316
Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly


Zulu123

  • Member
  • Posts: 525
Reply 2 on: Apr 19, 2019
Excellent

Hdosisshsbshs

  • Member
  • Posts: 315
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

Three Sushi Does Not Make an EggRoll Three Sushi Does Not Make an EggRoll
Non-competitive inhibition Non-competitive inhibition
The frontal sinus, an airfilled space just behind the brow, is a unique size and shape in each of us The frontal sinus, an airfilled space just behind the brow, is a unique size and shape in each of us
Children make a fast adjustment to a new culture, although, as with these Hmong children in ... Children make a fast adjustment to a new culture, although, as with these Hmong children in ...
Electric and butane-powered soldering guns used to make electrical repairs. Soldering guns are sold ... Electric and butane-powered soldering guns used to make electrical repairs. Soldering guns are sold ...
To help make good electrical contact with the terminals without doing any harm, select the ... To help make good electrical contact with the terminals without doing any harm, select the ...
Video: Glucagon (glycogenolysis and gluconeogenesis)

For a complete list of videos, visit our video library