Question : The demand curve facing a perfectly competitive firm:
Option 1: downward sloping
Option 2: perfectly inelastic
Option 3: a concave curve
Option 4: perfectly elastic
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Correct Answer: perfectly elastic
Solution : The correct option is perfectly elastic .
A completely competitive company faces a perfectly elastic demand curve, meaning its slope is zero. In other words, at the market price, the demand curve is a horizontal line. This is because, in a market with perfect competition, every business is a price taker and is free to offer any number of its goods for sale at the going rate.
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Question : If the price elasticity of demand is less than one, then the demand for the goods is said to be ______.
Question : Which of the following statements is/are correct regarding the liquidity trap?
i. It is where speculative demand for money is infinitely inelastic and the liquidity preference curve becomes perfectly elastic. ii. It is where speculative demand for money is
Question : Which of the following statements is/are correct about speculative demand for money?
i. It is a Perfectly interesting elastic. ii. It is Relatively interest-elastic. iii. It is Perfectly interest inelastic. iv. It is Relatively interest inelastic.
Question : Perfectly inelastic demand is equal to:
Question : Kinked demand curve is a feature of
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