In the absence of any government regulation on price, if a firm has no power to set price on its own, one can safely conclude
A) the demand curve for the firm's product is horizontal.
B) there aren't many firms in the industry.
C) the market is in long-run equilibrium.
D) the firms in this industry are not profitable.
A
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A principal-agent problem occurs when
a. people are "fooled" by high absolute wages offered by employers. b. insurance increases people's willingness to take risks. c. an employer cannot fully monitor the employee's work. d. a highly productive worker is unable to earn any rent.
After an increase in demand in a constant-cost industry, firms will find themselves with higher average cost curves
Indicate whether the statement is true or false
What is the common method of financing a budget deficit?
An appreciation in the value of the dollar would
a. make U.S. goods less expensive to foreigners. b. encourage U.S. consumers to buy more foreign goods. c. increase the number of dollars that could be purchased with a Mexican peso. d. discourage U.S. consumers from traveling abroad.