When we say that a firm is a price taker, we are indicating that the
a. firm takes the price established in the market then tries to increase that price through advertising.
b. firm can change output levels without having any significant effect on price.
c. demand curve faced by the firm is perfectly inelastic.
d. firm will have to take a lower price if it wants to increase the number of units that it sells.
B
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In the above figure, when the economy is in a long-run equilibrium, the price level will be
A) 90. B) 100. C) 110. D) 120.
Of the types of business organizations in the United States, sole proprietorships account for the ________ percentage of firms and the ________ percentage of profits
A) smallest; smallest B) largest; largest C) smallest; largest D) largest; smallest
Numerically, the dominant type of business enterprise in the United States is
A) the corporation. B) the partnership. C) the proprietorship. D) the multinational corporation.
A result of an exchange rate depreciation, would occur as the spending patterns change in response to a change in the exchange rate.
a. expenditure switching from domestic to foreign products b. expenditure switching from foreign to domestic products c. expenditure switching from rural to urban producers d. terms-of-trade deterioration