If a firm can change market prices by altering its output then it:
a) Faces a horizontal demand curve.
b) Has market power.
c) Is a competitive firm.
d) Is a price taker.
Answer: b) Has market power.
Economics
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In the figure above, what is Gap's economic profit?
A) zero B) $5,000 C) -$5,000 D) -$1,160
Economics
Suppose there are five goods in the economy, A-E. The current-year quantity of each is 10A, 20B, 30C, 40D, and 50E. Current-year prices are $1 for each unit of A, $2 for each unit of B, $3 for each unit of C, $4 for each unit of D, and $5 for each unit of E. Base-year prices are $1 for each good. Real GDP in the current year equals
A) $100. B) $130. C) $150. D) $180. E) $550.
Economics