A price-setting firm
A. can raise the price of its product and sell the same number of units.
B. can lower the price of its product and sell more units.
C. possesses little market power.
D. sells a product that is not differentiated from the product sold by its rivals or sells in a limited geographic market area with only one or a few sellers.
Answer: B
You might also like to view...
According to the graph shown, if the government decides to increase taxes, it is most likely at equilibrium:
A. A B. B C. C D. D
Exhibit 8-4 Demand and cost curves for a monopolist
?
As shown in Exhibit 8-4, in order to maximize its profit (or minimize its loss), what price should the monopoly charge for its product?
A. $60 per unit. B. $90 per unit. C. $120 per unit. D. $150 per unit.
In reading bond quotes:
A. the bid price is usually above the asked price. B. the asked price is usually above the bid price. C. the asked price is fixed over the life of the bond. D. bid and asked prices must be equal as set forth by SEC regulations.
Prices of European goods are rising faster than prices of similar goods in the United States. Consequently Europeans substitute American goods for European goods and the euro depreciates. This phenomenon is the basis of
A. Ricardo’s Law. B. comparative advantage. C. absolute advantage. D. purchasing power parity.