If a firm can change market prices by altering its output, then it
A. Has market power.
B. Is a price taker.
C. Is a competitive firm.
D. Faces a horizontal demand curve.
Answer: A
Economics
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Oligopoly: a. Does not meet the condition for allocative efficiency. b. Does not meet the condition for productive efficiency. c. May lead to greater technological progress
d. a. and b. are true, but not c.
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To increase the federal funds rate, the Fed can:
a. decrease the discount rate. b. buy government bonds from the public. c. decrease the prime interest rate. d. sell government bonds to commercial banks.
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