Being a price taker essentially means
A) a firm can influence the market price.
B) a firm cannot influence the market price.
C) the firm cannot legally set its price above the market price.
D) the firm cannot legally set its price below the market price.
Answer: B
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Which of the following statements regarding patents is false?
A) Patents can help firms gain market power through innovation and then act as a barrier to entry. B) A firm that has market power as a result of a patent may be more likely to innovate than a perfectly competitive firm. C) Patents encourage the production of information, which might otherwise be under supplied. D) Patents can last for an indefinite time period.
Currency traders expect the dollar to appreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will decrease. B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease. C) The dollar will appreciate, and the equilibrium quantity of dollars will increase. D) The dollar will appreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.