This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to make ... (Read 111 times)

Zulu123

  • Hero Member
  • *****
  • Posts: 525
on: Apr 19, 2019

Question 1

A perfectly elastic demand curve implies that, 
ceteris paribus


◦ a firm can sell more by lowering its price.
◦ if a firm raises its price above the market price, quantity demanded will equal zero.
◦ the price a firm charges is irrelevant, as it will sell the same amount regardless of the price charged.
◦ a firm can raise its price and not lose all its customers.

Question 2

Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to make excess profits in the long run?


◦ the fact that wool producers are ʺprice takersʺ
◦ the assumption that wool producers in the industry do not ʺdifferentiateʺ their products
◦ the fact that the demand curve facing each wool producer is perfectly elastic
◦ There is free entry into the wool industry.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Zulu123 on Apr 19, 2019

mcinincha279

  • Sr. Member
  • ****
  • Posts: 316
Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly


Zulu123

  • Member
  • Posts: 525
Reply 2 on: Apr 19, 2019
Gracias!

ultraflyy23

  • Member
  • Posts: 312
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Wild chimpanzees make and use simple tools to obtain food, learning tool making from one another. Wild chimpanzees make and use simple tools to obtain food, learning tool making from one another.
Early in the twentieth century, when malnutrition was common, companies such as this one advertised Early in the twentieth century, when malnutrition was common, companies such as this one advertised
It is difficult for Americans to grasp the depth of the poverty that is the everyday life of ... It is difficult for Americans to grasp the depth of the poverty that is the everyday life of ...
Lineweaver–Burk plots of the reactions with and without a competitive inhibitor Lineweaver–Burk plots of the reactions with and without a competitive inhibitor
Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ... Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ...
Curved spines make cocklebur (Xanthium) fruits stick to the fur of animals (and clothing of humans) Curved spines make cocklebur (Xanthium) fruits stick to the fur of animals (and clothing of humans)
Video: Mechanisms of capillary exchange (transcytosis & bulk flow)

For a complete list of videos, visit our video library