(16) If the demand curve for a firm's output is perfectly elastic, then the firm is

a) a monopolist b) perfectly competitive

c) an oligopolist d) monopolistically competitive

(17) If a firm raises its price by 10% and total revenue remains constant, then

(A) the price elasticity of demand for its output is unitary

(B)the demand curve for the firms output is flat (assume price is measured on the vertical axis)

(C) the demand curve for the firms output is inelastic

(D) the demand curve for the firms output is highly elastic

(18) All of the following statements are incorrect except:

(a) Perfect competition is characterized by many large firms selling differentiated products.

(b) In the long run, new farm technology benefits all farmers by increasing agricultural output.

(c) Farmers benefit from government farm supply control programs that reduce farm supply, given the inelastic demand for farm commodities.

(d) The demand for meats is more elastic relative to the demand for beef since meats have more substitutes relative to beef.

(19) All of the following statements are correct except,

a) Farm output varies from one year to another because of changing input

and output prices, weather, disease, government programs, etc.

b) Free-rider problem in agricultural production and marketing undermines

the collective effort of the agricultural producers.

c) Seasonality of farm commodities causes annual variability in the commodity

production.

d) Marketing and consumption peaks and valleys are more pronounced with perishables.

(20) All of the following statements are correct except:

(A) Assuming that McDonalds coffee and Starbucks coffee are substitutes, a decrease in Starbucks coffee price will lead to a leftward shift in demand for McDonalds coffee.

(B) Farmers typically benefit from a small crop as opposed to a large crop, given the inelastic nature of demand for farm commodities.

(C) Inelastic income elasticity of demand for bread indicates that a 10% change in income will generate an 8% change in demand for bread.

d) Assuming that trout is a normal good, decreasing incomes will typically result in an increase in demand for trout.