Firms in perfectly competitive industries have a ________ individual demand curve when the price is on the vertical axis and the quantity is on the horizontal axis. The shape of the curve is result of the firm being a ________
A) horizontal; price taker
B) downward sloping; price maker
C) vertical; price taker
D) downward sloping; price taker
A
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Since most firms use a stable markup, prices will remain stable over long periods of time
a. True b. False
In the long run the prices charged by a firm in monopolistic competition will be
a. high enough to provide profits to the firm. b. so low that many firms will drop out of the industry. c. equal to marginal cost. d. equal to average cost, including the opportunity cost of capital.
In monopoly, the firm ______.
a. is a price taker b. will only operate on the bottom half of its demand curve c. cannot set both its price and the quantity sold; if the monopolist reduces output, the price will rise, and if the monopolist expands output, the price will fall d. all of these
Which of the following is the term used to describe a failing bank selling off a substantial amount of assets in a short time period in order to remain solvent?
A. Fire sale B. Short sale C. Long sale D. Liquidity sale