A firm operating in a perfectly competitive market is a price taker because:
a. no firm has a significant market share.
b. no firm's product is perceived as different.
c. setting a price higher than the going price results in zero sales.
d. all of these.
d
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When a firm is able to engage in perfect price discrimination, its marginal revenue curve
A) lies below its demand curve. B) is the same as its demand curve. C) lies above its demand curve. D) is the same as its supply curve. E) is undefined because it does not exist.
To combat a recession with discretionary fiscal policy, Congress and the president should
A) decrease taxes to increase consumer disposable income. B) decrease government spending to balance the budget. C) lower interest rates and increase investment by increasing the money supply. D) raise taxes on interest and dividends, but not on personal income.