When the demand for an imperfect competitor's product is greater than it planned, the firm will
A. reduce the price until supply equals demand.
B. meet the demand at its set price.
C. increase the price of the product until supply equals demand.
D. allow a shortage of the product to develop, without changing the product's price.
Answer: B
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If, at a firm's projected sales level, the marginal cost is $125, the average cost is $150 and the markup is 20 percent, then its selling price is
A) $125. B) $150. C) $165. D) $180.
Which of the following is most likely an example of the division of labor?
a. It is easier to be a wheat farmer in North Dakota than in Florida. b. If you live in or near a big city, it is easier to attract enough customers to operate a successful dry cleaning business or movie theater than if you live in a sparsely populated rural area. c. A restaurant divides up the task of serving meals into a range of jobs like top chef, sous chefs, less-skilled kitchen help, and servers to wait on the tables. d. Only those with medical degrees qualify to become doctors.
With the Troubled Asset Relief Program (TARP), the Treasury provided funds to banks in exchange for stock
Indicate whether the statement is true or false
The most commonly traded product (by value) in recent years has been
A) petroluem. B) wheat. C) televisions, stereos, and VCRs. D) automobiles.