The demand curve for the product of a perfectly competitive firm's demand curve indicates that if the firm
A) lowers its price, it can sell more.
B) accepts the market-set price, the number of units the firm can sell is limited.
C) raises its price, sales will fall to zero.
D) changes its price, the quantity demanded will change in the opposite direction.
Answer: C
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Suppose the exchange rate falls from $1.20 Canadian per U.S. dollar to $1.10 Canadian per U.S. dollar. U.S. exports will ________, U.S. imports will ________, and U.S. aggregate demand will ________
A) decrease; increase; decrease B) decrease; increase; increase C) increase; decrease; increase D) increase; increase; increase
Developing countries with low saving rates and poor levels of health and education are likely to experience
A) low rates of growth in real GDP per capita. B) easy access to financial backing from banks. C) rapid growth in household incomes. D) high levels of foreign direct investment.
When a positive externality exists, _______________________ and thus _______________ intervention may be needed to achieve efficiency.
A. external costs are necessarily greater than private costs; government B. social costs equal private costs; no government C. social costs are less than private costs; government D. social costs are greater than private costs; government E. none of the above
Which of these qualifies as a "miscellaneous liability" of a bank?
A) repurchase agreements B) negotiable CDs C) transactions deposits D) savings deposits