Suppose that the paper clip industry is perfectly competitive. Also assume that the market price for paper
Question:
Suppose that the paper clip industry is perfectly competitive. Also assume that the market price for paper clips is 2 cents per paper clip. The demand curve faced by each firm in the industry is:
a. A horizontal line at 2 cents per paper clip.
b. A vertical line at 2 cents per paper clip.
c. The same as the market demand curve for paper clips.
d. Always higher than the firm’s MC curve.
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Related Book For
Microeconomics Principles, Problems and Policies
ISBN: 978-1259450242
20th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
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