1. The law of demand states that:
price and quantity demanded are inversely related.
the larger the number of buyers in a market, the lower will be product price.
price and quantity demanded are directly related.
consumers will buy more of a product at hi
use both the economic perspective and the scientific method.
use the economic perspective but not the scientific method.
make positive economic statements, but not normative economic statements.
reject theorizing as being impractical.
1. An industry is expected to expand if firms in the industry are
profits that exactly cover all of the firms' opportunity costs.
2. Implicit costs are:
equal to total fixed costs.
1. Competitive firms are assumed to:
be price takers.
sell where marginal cost is minimized.
confront demand curves that are perfectly inelastic.
2. Which is a feature of a purely competitive market?
price differences between firms producing th