A perfectly competitive firm does not try to sell more of its product by lowering its price below the market price because
A. its competitors would not permit it.
B. its demand curve is inelastic, so total revenue will decline.
C. this would be considered unethical price chiseling.
D. it can sell all it wants to at the market price.
Answer: D
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The revenue collected by an income tax is a function of the average tax rate
a. True b. False
A price ceiling is:
A. a legal maximum price. B. a legal minimum price. C. a legal maximum quantity that can be sold at a particular price. D. a legal minimum quantity that can be sold at a particular price.
After a corporate merger, Rebecca Jalamid became the CEO of a monopoly firm. She was surprised to learn that one benefit of being a monopoly was that her company
a. could charge as high a price as desired b. was in a good position to capture the fruits of any innovation c. received increased scrutiny from government regulators d. started to attract potential competitors motivated to get a share of the economic profits of Rebecca's company e. contributed to the deadweight loss in the economy
A major grocery store chain switches from bagging groceries in paper sacks to bagging them in plastic bags. As a result, the grocery chain demands more plastic bags than are available at the current market price. As a result: a. the market price for paper sacks is likely to increase
b. the market price for plastic bags is likely to increase. c. the quantity of paper sacks purchased by the chain is likely to increase. d. none of the above