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 97 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
YES! Correct, THANKS for helping me on my review

kishoreddi

  • Member
  • Posts: 329
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

bio industry bio industry
Eye ball perfectly labelled (map) Eye ball perfectly labelled (map)
The Acheulean industry is typified by hand axes and cleavers. The Acheulean industry is typified by hand axes and cleavers.
Effects of competitive inhibition on enzyme kinetics Effects of competitive inhibition on enzyme kinetics
What atomic or hybrid orbital on P make up the sigma bond between P and Cl in phosphorous ... What atomic or hybrid orbital on P make up the sigma bond between P and Cl in phosphorous ...
How to make pancakes How to make pancakes
Video: Bulk flow - Factors that influence bulk flow

For a complete list of videos, visit our video library