A firm operating in a perfectly competitive market is a price ...

[fox]

A firm operating in a perfectly competitive market is a price taker because:
 a. no firm has a significant market share.
  b. no firm's product is perceived as different.
  c. setting a price higher than the going price results in zero sales.
  d. all of these.

Question 2

If the income elasticity of demand for a good is negative, this means that:
 a. only the poor will buy the good.
  b. as incomes fall, less will be spent on the good.
  c. as incomes rise, the demand for the good will fall.
  d. the good does not obey the law of demand.

[bigcheese9]

Answer to Question 1

d

Answer to Question 2

c

[fox]

TYSM

[olderstudent]

Excellent