If a firm faces a downward-sloping demand curve, then:
A. the firm could be either a perfectly competitive firm or an imperfectly firm.
B. the firm's production process exhibits economies of scale.
C. the firm's marginal revenue from selling an additional unit of output is less than price.
D. it is a perfectly competitive firm.
Answer: C
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An increase in the rate of economic growth curve could be caused by all of the following except
A. a national tax that encourages all employers to provide more training and education for employees which leads to an across-the-board upgrade of the skill level of the nation's workforce. B. a movement along the production possibilities curve so that the society produces more consumer goods and less capital goods. C. an increase in immigration that increases the country's labor force by 20 percent. D. an increase in research and development spending for space technology that improves the quality of the nation's capital stock.
The speculative demand for money is the stock of money that people hold to:
a. pay their predictable, everyday expenses. b. pay for any unexpected expenses that may occur. c. buy stocks, bonds, and other financial assets. d. buy the foreign currencies needed to purchase imports.
The primary objective of inward-oriented strategies is:
a. to raise government revenue through tariffs and other import taxes. b. to lower the domestic price of imports. c. to replace imported manufactured goods with domestic goods. d. to encourage imports through reduction of tariff and non-tariff barriers. e. to encourage the production of those goods in which the country has an absolute advantage.
Which of the following are options available to government when dealing with monopolies?
a. b, c, and e b. nationalization c. marginal cost pricing regulation d. marginal revenue pricing regulation e. breaking up the firm