A perfectly competitive firm does not try to raise its price above the market price because
A. its competitors would not permit it.
B. this would be considered unethical price chiseling.
C. its demand curve is inelastic, so total revenue will decline.
D. it would not be able to sell its output.
Answer: D
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The Social Security program is financed directly from
A) voluntary contributions by the elderly. B) sales taxes on goods with inelastic demand. C) payroll taxes. D) poll taxes.
The government's fixing of exchange rates is not unlike the government's fixing of other prices, such as the price of rental units
Indicate whether the statement is true or false
When economic profits are zero for a firm, it means that:
A. accounting profits are also zero. B. no firms will enter or exit the industry. C. average revenue slightly above average total cost. D. average variable costs are minimized.
To test the gravity equation of trade, a regression model was calculated for two nations, the United States and Canada, testing the correlation among:
a. regional trade, size of GDP, and distance for states and provinces. b. intra-industry trade, size of GDP, and size of states and provinces. c. bilateral trade and ratio of GDP for states and provinces. d. bilateral trade, size of GDP, and distance for states and provinces.