Which of the following statements is NOT true for a perfectly competitive firm?
A. The market demand and supply curves determine the market price.
B. The firm's demand curve is perfectly elastic.
C. The firm can influence its demand curve by advertising its product.
D. A firm's demand curve is horizontal.
Answer: C
You might also like to view...
Refer to Figure 13-2. Ceteris paribus, a decrease in the capital stock would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
A progressive income tax system is particularly effective as an automatic stabilizer because
A. In a booming economy, taxpayers move into higher tax brackets, which restrains their spending. B. During a recession, it causes the budget deficit to fall. C. It falls more heavily on taxpayers with high MPCs, which stimulates aggregate demand. D. It reduces demand when income falls.