Demand curves in competitive markets represent which of the following?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aMarginal costs of productionbAverage costs of productioncSupplier fixed costsdMarginal benefit to consumers
Question
Demand curves in competitive markets represent which of the following?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aMarginal costs of productionbAverage costs of productioncSupplier fixed costsdMarginal benefit to consumers
Solution
The demand curve in competitive markets represents the marginal benefit to consumers. So, the correct answer is d) Marginal benefit to consumers.
Here's why: The demand curve in a market system reflects the willingness and ability of consumers to purchase a product at different prices. This is often referred to as the marginal benefit, which is the additional satisfaction or utility that a consumer receives from purchasing an additional unit of a good or service. As price decreases, the marginal benefit increases, hence consumers are willing to buy more of the product, and vice versa.
Similar Questions
For a firm in a perfectly competitive industry, the demand curve for its own product is _________.Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.averticalbdownward slopingcthe same as the marginal cost curvedhorizontal at the market price
For a product with external costs, the social cost curve lies above the market supply curve.Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aTruebFalse
If a monopoly faces a demand curve that is downward-sloping, then marginal revenue will be which of the following?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aMust be less than pricebMust be equal to pricecMust be greater than pricedIs not related to the price
In perfect competition, the demand curve for an individual’s firm product is _________.Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.adownward slopingbrelatively elasticcperfectly inelasticdperfectly elastic
A monopoly facing a demand curve lower than the average cost curve over wide ranges of output will likely do what?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aMake large economic profitsbGo out of businesscProduce where average costs are higher than marginal costsdNot maximize profits
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