Table 8.2

$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\text { Demand }$ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text { Cost }$
$$\begin{array} { | c | c | c | c | }
\hline \text { Price(dollars) } & \begin{array} { c }
\text { Quantity } \
\text { (cords of } \
\text { wood) }
\end{array} & \begin{array} { c }
\text { Quantity } \
\text { (cords of } \
\text { wood) }
\end{array} & \begin{array} { c }
\text { Marginal } \
\text { cost (dollars) }
\end{array} \
\hline 60 & 5 & 1 & 50 \
\hline 80 & 4 & 2 & 60 \
\hline 100 & 3 & 3 & 100 \
\hline 120 & 2 & 4 & 140 \
\hline
\end{array}$$
-Refer to Table 8.2.The perfectly competitive firewood market is composed of 1,000 identical consumers and 1,000 identical firms.The table shows the cost for one representative firm and the demand schedule for one representative consumer.The demand curve facing a single firm will be a _____

Question

Table 8.2

$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\text { Demand }$  $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text { Cost }$
$$\begin{array} { | c | c | c | c | } 
\hline \text { Price(dollars) } & \begin{array} { c } 
\text { Quantity } \
\text { (cords of } \
\text { wood) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { (cords of } \
\text { wood) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { cost (dollars) }
\end{array} \
\hline 60 & 5 & 1 & 50 \
\hline 80 & 4 & 2 & 60 \
\hline 100 & 3 & 3 & 100 \
\hline 120 & 2 & 4 & 140 \
\hline
\end{array}$$
-Refer to Table 8.2.The perfectly competitive firewood market is composed of 1,000 identical consumers and 1,000 identical firms.The table shows the cost for one representative firm and the demand schedule for one representative consumer.The demand curve facing a single firm will be a _____

Quizplus · Accepted Answer

In a perfectly competitive market, the demand curve facing a single firm is perfectly elastic because the firm is a price taker. The price is determined by the market, and in this case, the equilibrium price where demand equals supply for the representative firm is $100 (3 cords of wood demanded and supplied at this price).

Table 82 \quad \quad \quad \quad \quad

Table 82 $\quad$ $\quad$ $\quad$ $\quad$ $\quad$