If a firm can change market prices by altering its output, then it
A. Has market power.
B. Is a price taker.
C. Is a competitive firm.
D. Faces a horizontal demand curve.
Answer: A
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Net exports equals
A) exports of goods and services minus imports of goods and services. B) imports of goods and services minus exports of goods and services. C) the government sector balance plus the private sector balance. D) Both answers A and C are correct.
The president of Toyota's Georgetown plant was quoted as saying, "Demand for high volumes saps your energy. Over a period of time, it eroded our focus [and] thinned out the expertise and knowledge we painstakingly built up over the years"
This quote suggests that A) as Toyota expanded its capacity, it experienced diseconomies of scale. B) Toyota was focused on "churning" out cars for which it did not invest sufficiently in training its workers. C) high demand for Toyota's cars prevented the company from focusing on its strength: auto design. D) Toyota was experiencing an excess demand for its automobiles which it had difficulty keeping up with.
Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4
Assume also that the marginal physical product of the last unit of capital is 30 and the marginal physical product of the last unit of labor is 10. Is this firm minimizing its costs of producing 500 units of output? A) No, because the marginal products of the two inputs are not equal. B) No, because the MRTS and the price ratio for the two inputs are not equal. C) No, because the prices of the two inputs are not equal. D) The answer cannot be determined without more information.
What are demand deposits?
(a) Money held by private individuals or corporations placed in depository accounts at banks (b) Liabilities (things that are owed) to banks and assets (things of value) to depositors or bank customers (c) Checking accounts that depositors can use on demand (d) All of the above