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1. The demand curve for the perfect competitor is horizontal because
A: demand is perfectly inelastic
B: the market dictates each firm's price
C: the firm is price maker
d: None of the above
2. For each example below, identify which statement is not characteristic of a perfectly competitive industry.
a: one firm produce a large portion of the industry's total output
b: there are many firms in the industry
c: their products are indistinguishable
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In 2005, APEX received a tax credit for production of its solar panels through the US Department of Energy's Energy Efficiency and Renewable Energy procurement plan.
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