Why is it that the industry demand curve slopes downward when the demand curves faced by individual

Question:

Why is it that the industry demand curve slopes downward when the demand curves faced by individual firms in perfectly competitive markets are horizontal?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-1292079578

Global Edition 1st Edition

Authors: David Laibson, John List

See More Books

Question Posted: Dec 15, 2015 07:50 AM

See More Questions

Explain why a demand curve slopes downward.
Consider an industry where there are two firms having identical flat marginal cost curves. Price and output in the industry are determined as follows: First Firm 1 announces how much it will produce,...
True or False: The industry demand curve, for a regressive factor is likely to be more elastic than the sum of the firms' demand curves.
02. The competitive exclusion principle only applies when the niches of competing species have a high degree of overlap. O True False 54bmit Q3. Four snake species colonize an island at the same...
A household appliance manufacturer wants to analyze the relationship between total sales and the companys three primary means of advertising (television, magazines, and radio). All values were in...
Is the confirmation of accounts payable by direct communication with vendors as useful and important an audit procedure as such confirmation of accounts receivable? Explain.
10. What are some barriers to effective delegation?
Peek Corporation owns 70% of the common stock of Seacrest Company. The stock was purchased for $420,000 on January 1, 2007, when Seacrest Companys retained earnings were $100,000. Preclosing trial...
1. What is the rationale, if any, for states to generally exclude services from their sales tax base? 2.What are some of the principal exemptions from the sales tax base typically found in most...
Do the reactions below proceed in good yield from left to right as shown? a) HO. H20 NaOH b) CI HO. HO. Na CI + H20 1 equivalent c) trace of Na OCH, CH3OH CH,O. HO. excess Submit Answer Retry Entire...
Use a graph to show the relationship between the marginal cost curve and the average total cost curve for a competitive firm. What can you conclude about average total cost when marginal cost is less...
How does a firm in a competitive market decide what level of output to produce in order to maximize its profit?
What is the comply or explain principle? How does it relate to conformity with corporate governance principles in the United States and in other countries around the world?
31. What is meant by path? 32. Give the formula for calculating D4 and D8 distance. 33. What is geometric transformation? 34. What is image translation and scaling? 35. Define the term Luminance
1. Explain Brightness adaptation and Discrimination 2.Explain sampling and quantization:
3. Explain about Mach band effect? 4. Explain color image fundamentals. 5. Explain CMY model.
1. Describe the fundamental steps in image processing? 2. Explain the basic Elements of digital image processing:
3. Explain the Structure of the Human eye 4. Explain the RGB model
Which LAN device commonly has the ability to filter packets and deny traffic based on the destination address? A. Router B. Gateway C. Hub D. Switch
An item of depreciable machinery was acquired on 1 July 2009 for $120,000 by cash It is expected to have a useful life of 10 years and zero salvage value On 1 July 2012, it was decided to revalue the...
Cash Flows From Operating Activities. The Brown Company provided the following data from its 1998 activities: \section*{Additional data:} Equipment costing $\$ 30,000$ with a book value of \(\$...
1. The private cost of production includes the amount a firm pays for _______, _______, and_______. 2. The external cost of production is the cost incurred by _______. 3. The social cost of...
1. The private cost of production includes the amount a firm pays for _______, _______, and_______. 2. The external cost of production is the cost incurred by _______. 3. The social cost of...
1. Compared to a pollution tax, a uniform-abatement policy is _________ (more/less) efficient because it does not exploit differences in ________across firms. 2. The command part of a...
Suppose you took a long position on a put option with an exercise price of $2.15 per pound and paid a premium of $0.24 per pound. Required: If the spot exchange rate turns out to be $2.30 per pound...
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 15 percent, 6 percent, 18 percent, 14 percent, and 10 percent. Suppose the average inflation rate over...
Required : a- outline the statement of comperhensive income for the year ended 30 november 2021 b- outline the statment of financial position as at 30 November The Trial Balance of Alim Enterprise at...

Why is it that the industry demand curve slopes downward when the demand curves faced by individual

Question:

Step by Step Answer:

Every firm in a competitive market is so small that it can increase production ...View the full answer

Microeconomics

Students also viewed these Economics questions