The demand curve faced by a perfectly competitive firm is vertical.?

[leland]

I need help on my homework!

Question 1

The demand curve faced by a perfectly competitive firm is vertical.

True

False

Question 2

In a perfectly competitive market, marginal revenue is the same as the market price.

True

False

Question 3

In short-run equilibrium in a perfectly competitive market, firms always make zero economic profit

True

False

Question 4

In order to maximize profits, a firm should produce the level of output at which total revenue is maximized.

True

False

Question 5

In a constant cost industry, the cost curves of individual firms will shift upward as the industry output expands.

True

False

Question 6

A perfectly competitive firm is a:

a. price maker.

b. price giver.

c. price taker.

d. price leader.

Question 7

A perfectly competitive firm has no influence over price because:

a. consumers establish the prices of products.

b. antitrust laws constrain perfectly competitive firms.

c. its output is insignificant relative to the market as a whole.

d. it is unaware of the demand curve it faces.

[benon]

5 is false.

[iomar]

1) false
2) true
3) false
4) flase
5) I dont now this one
6) c
7) c