37. Which of the following is more accurate regarding the demand function faced by a representative firm in a perfectly competitive market? a) It is perfectly elastic. c) It corresponds to the market equilibrium quantity. b) It is perfectly inelastic. d) It is positively sloped. 38. Which of the following is true regarding the short run supply curve of a representative firm in a perfectly competitive market? a) It is the marginal cost curve above the average total cost curve. b) It is the marginal cost curve above the average variable cost curve. c) It is the average variable cost curve above the marginal cost curve. d) It is always equal to the average fixed cost curve.
37. Which of the following is more accurate regarding the demand function faced by a representative firm in a perfectly competitive market? a) It is perfectly elastic. c) It corresponds to the market equilibrium quantity. b) It is perfectly inelastic. d) It is positively sloped. 38. Which of the following is true regarding the short run supply curve of a representative firm in a perfectly competitive market? a) It is the marginal cost curve above the average total cost curve. b) It is the marginal cost curve above the average variable cost curve. c) It is the average variable cost curve above the marginal cost curve. d) It is always equal to the average fixed cost curve.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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please just correct answers 37,38!!!!
Transcribed Image Text:36. Independent of the market structure, the necessary condition for a profit maximisation
states:
a) Price must be equal to marginal cost.
b) Price must be equal to marginal revenue.
c) Marginal revenue must be equal to marginal cost.
d) Profits must always be positive.
37. Which of the following is more accurate regarding the demand function faced by a
representative firm in a perfectly competitive market?
a) It is perfectly elastic.
c) It corresponds to the market equilibrium quantity.
b) It is perfectly inelastic.
d) It is positively sloped.
38. Which of the following is true regarding the short run supply curve of a representative firm
in a perfectly competitive market?
a) It is the marginal cost curve above the average total cost curve.
b) It is the marginal cost curve above the average variable cost curve.
c) It is the average variable cost curve above the marginal cost curve.
d) It is always equal to the average fixed cost curve.
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