When two companies that produce the same product merge, it is called a

The demand curve for the product of a perfectly competitive firm's demand curve indicates that if the firm

A) lowers its price, it can sell more. B) accepts the market-set price, the number of units the firm can sell is limited. C) raises its price, sales will fall to zero. D) changes its price, the quantity demanded will change in the opposite direction.

To prevent obesity, the government may establish a tax on high caloric foods, such as twinkies. A twinkie tax will have the smallest impact on quantity demanded when the demand curve for twinkies is

A) perfectly elastic. B) perfectly inelastic. C) more elastic than the supply curve. D) both A and B.