#36 Which of the following statements is false? a. Firms under perfect competition face perfectly inelastic...
#36 Which of the following statements is false?
a. Firms under perfect competition face perfectly inelastic demand curves.
b. Under a monopolistic competition, there are different prices for perceived product differences.
c. Interdependence of firms is a characteristic of an oligopoly.
Homework Answers
Answer
Option a. is false
All products in a perfectly competitive market are viewed as impeccable substitutes, and the demand curve is perfectly elastic for every one of the little, singular firms that take an interest in the market. These organizations are cost takers– on the off chance that one firm attempts to raise its cost, there would be no demand for that association's item.
Option B and C are true .
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#36 Which of the following statements is false?
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