A firm that is a price taker can:
A. substantially change the market price of its product by changing its level of production.
B. sell all of its output at the market price.
C. sell some of its output at a price higher than the market price.
D. decide what price to charge for its product.
Answer: B
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In regards to the uncommon length of the Great Depression, both Schumpeter and Higgs contend that:
a. private investment remained depressed in part due to the political climate created by the New Deal. b. Social Security and the freedoms granted to labor, along with a progressive tax structure promoted growth in private investment. c. the undistributed profits tax of 1936 encouraged businesses to undertake long-term investments. d. the New Deal rhetoric from President Roosevelt, offered a pro-business slant that offended labor groups.
Fiscal policy is the use of government spending and taxation to make changes in the level of national income
Indicate whether the statement is true or false
Price serves as a
A) rationing device. B) transmitter of information. C) means of determining who gets what of the available limited resources and goods. D) a and b E) all of the above
An increasing share of the private capital flows to DVCs in recent years has been in the form of:
A. interest-free government loans. B. educational and training assistance. C. direct foreign investment. D. bank loans.