please Answer Review QuestionsQUESTION 22The price elasticity of demand for any particular perfectly competitive firm's output isA. Less than 1.B. Equal to 1. O C. Equal to zero.D. Equal to infinite. Review QuestionsQUESTION 23Why monopoly firm earns abnormal profit in the long run?

Price elasticity of demand is the responsiveness of change in the quantity demanded to that of…

Answered: The price elasticity of demand for any…

The price elasticity of demand for any particular perfectly competitive firm's output is A. Less than 1. O B. Equal to 1. O C. Equal to zero. O D. Equal to infinite.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 19RQ: Would you usually expect elasticity of demand or supply to be higher in the short run or in the long...

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Concept explainers

Inflation and Purchasing Power Theory

In economic terms, Inflation refers to the increase in the costs of various commodities which are used in daily lifestyle like food, clothes, transport, etc. over a specific time. It may lead to a fall in the purchasing power of the people and also affects the exchange rate of the currency because of the price increase. As the purchasing power falls the unit of the currency in the economy falls. When the prices of the commodities are decreased, then the purchasing power of the consumers will rise, then it will lead to deflation and changes the currency of the base economy to that of the foreign economy which will lead to change in exchange rates.

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Why monopoly firm earns abnormal profit in the long run?

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