Which term refers to a legally established maximum price that firms may charge?

If marginal revenue is less than marginal cost, the firm should

A) raise price. B) raise marginal revenue. C) increase its rate of output. D) decrease its rate of output.

The firm’s demand curve is horizontal no matter what its output is because it ______.

a. can influence the market price determined mostly by the low market output
b. must accept the market price determined by the intersection of the market supply and demand curve
c. can influence the market price determined by the intersection of the market supply and demand curve
d. must accept the market price determined mostly by the high market output