Which of the following statements about a firm, which is a price taker is false?
(a) The firm will sell its product at the market price.
(b) The demand for firm's product will increase, if price is increased above the market price.
(c) The demand for firm's product will decrease, if price is increased above the market price.
(d) None of the above.
Answer: (b) The demand for firm's product will increase, if price is increased above the market price.
Economics
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If the stock market behaves according to the efficient market hypothesis, then
a. investment in stocks cannot be profitable. b. future changes in stock movements are completely predictable. c. current stock prices reflect all currently available information. d. both b and c. e. all of the above.
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