Author Question: A perfectly competitive firm has to charge the same price as every other firm in the market. ... (Read 95 times)

big1devin

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A perfectly competitive firm has to charge the same price as every other firm in the market. Therefore, the firm
 
  A) faces a perfectly elastic supply curve. B) is not able to make a profit in the short run.
  C) faces a perfectly inelastic demand curve. D) is a price taker.

Question 2

When a monopolistically competitive firm lowers it price one bad thing happens to the firm. What is this one bad thing called?
 
  A) the price effect B) the substitution effect
  C) the output effect D) the income effect


Jbrasil

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Answer to Question 1

D

Answer to Question 2

A



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