Why is the demand curve for a perfectly competitive firm perfectly elastic?Multiple choice question.It cannot obtain a higher price by restricting its output, nor does it need to lower its price to increase its sales volumeIt cannot obtain a lower price by restricting its output, nor does it need to lower its price to increase its sales volumeIt cannot obtain a higher price by increasing its output, nor does it need to lower its price to increase its sales volumeIt cannot obtain a higher price by restricting its output, nor does it need to raise its price to increase its sales volume

A perfectly elastic demand curve implies that the firm:Multiple Choicemust lower price to sell more output.can sell as much output as it chooses at the existing price.realizes an increase in total revenue which is less than product price when it sells an extra unit.is selling a differentiated (heterogeneous) product.

Draw the perfectly competitive market model which reflect the following question and answer the question. In a perfectly competitive market model the demand curve of an individual firm is: Group of answer choicesperfectly inelastic.relatively inelastic.perfectly elastic.relatively elastic.

Which of the following is characteristic of a purely competitive seller's demand curve?Multiple ChoicePrice and marginal revenue are equal at all levels of output.Average revenue is less than price.Its elasticity coefficient is 1 at all levels of output.It is the same as the market demand curv

Which of the following is true under conditions of perfect competition?Multiple ChoiceThere are differentiated products.The market demand curve is perfectly elastic.No single firm can influence the market price.Each individual firm has the ability to set its own price.

Multiple Choice QuestionWhy is a purely competitive seller's resource demand curve more elastic than an imperfectly competitive seller operating in a monopoly, oligopoly, or monopolistic competition?Multiple choice question.Sellers in imperfect competition must raise prices to sell more, thus expanding labor by a higher percentage than purely competitive sellers.Sellers operating in imperfect competition must keep prices the same, thus expanding labor by the same percentage as purely competitive sellers.Sellers in imperfect competition must lower prices to sell more, thus expanding labor by a lower percentage than purely competitive sellers.