Author Question: In the perfectly competitive market, individual firms exert no effect on the market price. ... (Read 117 times)

saraeharris · **on:** Jun 30, 2018

In the perfectly competitive market, individual firms exert no effect on the market price. Therefore, the firm's marginal revenue curve is:
a. indeterminate.
b. an upward-sloping curve.
c. a downward-sloping curve.
d. the same as the firm's demand curve.

Question 2

The more inelastic the demand for a product, the more the actual burden of a tax on the product will:
a. fall on sellers.
b. fall on buyers.
c. fall equally on both buyers and sellers.
d. create a larger deadweight loss (or excess burden).