Which of the following is NOT true of a perfectly competitive firm?
A. It sells only a small fraction of the total quantity exchanged in the market.
B. It seeks to maximize revenue.
C. It faces a perfectly elastic demand curve.
D. It is unable to influence the price of the good it sells.
Answer: B
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When the European System of Central Banks uses main refinancing operations, it is similar to the Federal Reserve using
A) dynamic open market operations. B) defensive open market operations. C) discount policy. D) reserve requirements.
Most research suggests that the elasticity of the labor supply with respect to taxes is:
A. very low for most people. B. very high for most people. C. highly variable across people. D. unpredictable in most settings.
The current role of the International Monetary Fund is one of
a. supervising a system of fixed exchange rates. b. providing assistance to countries with currency or debt problems. c. setting exchange rates based on a gold exchange standard. d. acting as a lender of last resort to central banks.
If the economy were producing at point F,
A. it would not be using its resources efficiently.
B. it would be in a recession.
C. it could gain units of guns without having to sacrifice units of butter.
D. it would specializing exclusively in butter production.