Which of the following statements best reflects a price-taking firm?
a. The firm can sell only a limited amount of output at the market price before the market price will fall.
b. If the firm were to charge less than the going price, it would maximize its profits and revenues.
c. If the firm were to charge more than the going price, it would sell none of its goods.
d. Both b and c are correct.
c
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The motive that drives firms to enter or exit an industry is
A) opportunity costs. B) diseconomies of scale. C) economic profit. D) accounting costs.
Refer to the table. This tax is such that the after-tax distribution of income will be:
A. more equal than the before-tax distribution.
B. less equal than the before-tax distribution.
C. distributed in precisely the same way as the before-tax distribution.
D. less than the before-tax distribution by the same percentage at each income level.