Author Question: In a perfectly competitive market, in the long run a permanent decrease in the market demand results ... (Read 94 times)

maychende

  • Hero Member
  • *****
  • Posts: 556
In a perfectly competitive market, in the long run a permanent decrease in the market demand results in a smaller number of firms.
 
  Indicate whether the statement is true or false

Question 2

Why do consumers prefer higher indifference curves (farther to the right) to lower indifference curves?
 
  What will be an ideal response?



nikmaaacs

  • Sr. Member
  • ****
  • Posts: 335
Answer to Question 1

TRUE

Answer to Question 2

When comparing two indifference curves, it is always possible to find consumption combinations on the higher indifference curve that have more of both goods than any particular point on the lower indifference curve. Consumers prefer consuming more goods rather than fewer, so they prefer the higher indifference curve because it offers more consumption of everything.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

For a complete list of videos, visit our video library