« previous next »

Author Question: What is NAFTA? What will be an ideal response?[br][br][b][color=#7BCCB5]Question ... (Read 88 times)

joe

  • Hero Member
  • *****
  • Posts: 627
on: Jun 29, 2018
What is NAFTA?
 
  What will be an ideal response?

Question 2

Comment on the following statement: The demand facing a firm in perfect competition is less elastic than the demand facing a firm in monopolistic competition.
 
  What will be an ideal response?


Joc

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Jun 29, 2018
Answer to Question 1

NAFTA, or the North Atlantic Free Trade Agreement is an agreement signed by the United States, Mexico, and Canada in which the three countries agreed to establish all North America as a free-trade zone.

Answer to Question 2

The statement is false. Firms in perfect competition face a large number of perfect substitutes for their products. Thus, the demand facing a firm in perfect competition is perfectly elastic (horizontal). While firms in monopolistic competition face a number of close substitutes, they are the only producers of their particular products. This gives them some ability to set the prices of their products without losing all demand. Thus, the demand curve faced by a firm in monopolistic competition is downward sloping and less elastic than that faced by a firm in perfect competition.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

joe

  • Hero Member
  • *****
  • Posts: 627
Reply #2 on: Jun 29, 2018
Thank you


Joc

  • Sr. Member
  • ****
  • Posts: 317
Reply #3 on: Jun 29, 2018
No problemo


« previous next »
 

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Urine Color Guide Urine Color Guide
The Alpha-Z Alphabetic Color-Coding System The Alpha-Z Alphabetic Color-Coding System
Genetics Question and Answers Genetics Question and Answers
Color-enhanced electron micrograph of E. coli undergoing cell division Color-enhanced electron micrograph of E. coli undergoing cell division
economic question economic question
economic question economic question
Video: Hypoglycemia Animation

For a complete list of videos, visit our video library