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Author Question: Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to make ... (Read 43 times)

Zulu123

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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
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Marked as best answer by Zulu123 on Apr 19, 2019

mcinincha279

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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.
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Zulu123

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Reply 2 on: Apr 19, 2019
Great answer, keep it coming :)

ashely1112

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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