Which of the following statements is true of price makers?
A) The supply curve of price makers is downward sloping.
B) The demand curve that price makers face is upward sloping.
C) Price makers set the price of a good after they determine how much to produce.
D) Price makers determine how much to produce after they set the price of a good.
C
You might also like to view...
When a bank borrows from the Federal Reserve the bank
A) receives a new deposit of legal reserves at the Federal Reserve. B) creates a new checkable deposit payable to the Federal Reserve. C) normally will do so because it has excess reserves. D) loses reserves equal to the amount of the loan.
In a perfectly competitive market price takers exist because there are:
A. few sellers and many buyers. B. few buyers and many sellers. C. many buyers and sellers. D. few sellers and buyers.
If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.
The basic coordinating mechanism in a free-market system is
A. quantity. B. a central government authority. C. price. D. the corporation.