Which of the following statements is NOT true for a perfectly competitive firm?
A) A firm's demand curve is horizontal.
B) The firm can influence its demand curve by advertising its product.
C) The firm's demand curve is perfectly elastic.
D) The market demand and supply curves determine the market price.
Answer: B
You might also like to view...
Rayburn Reed is a highly talented photographer. He has chosen to specialize in photography because of all of the following except
A) for him, this is the most lucrative way to purchase the products that he wants to consume. B) his photographs are highly esteemed by art lovers who are willing to pay very high prices. C) he obviously has a comparative advantage in photography. D) his opportunity cost of pursuing another career is very low.
Rent, interest, and profit are all forms of income paid to the owners of
a. aggregate stock. b. aggregate demand. c. firms and not-for-profit organizations. d. land and capital.
The consumption schedule shows the relationship of household consumption to the level of:
a. The marginal propensity to consume b. Disposable income c. Investment d. Saving
If regulators were to force a natural monopoly to set the price of its product equal to its marginal cost of production (in order to encourage economically efficient use of the product), the natural monopoly will
A. understate its true costs of production. B. shut down immediately. C. earn an economic loss. D. earn a normal profit.