One implication of the shape of the demand curve facing a perfectly competitive firm is that:
A. the market would be unable to reach a new equilibrium if demand changed.
B. if the firm increases its price above the market price, it will earn zero revenue.
C. if the firm decreases its price below the market price, it will earn higher revenue.
D. if the firm increases its price above the market price, it will earn higher revenue.
Answer: B
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The tendency for private saving to increase in response to growing government deficits is known as the
A) crowding out effect. B) money illusion effect. C) Keynes effect. D) Ricardo-Barro effect.
How are Federal Reserve Board Governors selected?
Which of the following is not an oligopolist?
A. The cigarette industry B. Your local water company C. The automobile industry D. OPEC
The quantity of a good demanded in a given time period increases as the price falls, which is known as:
A. Say's Law. B. The law of ceteris paribus. C. The law of demand. D. The opportunity cost.