If a firm is able to set price,
A) it is a monopoly.
B) its marginal revenue is constant.
C) it sells its output at a constant price.
D) it faces a downward-sloping demand curve.
D
You might also like to view...
Which of the following is NOT a reason why real GDP can be expanded beyond a level consistent with its long-run growth path in modern Keynesian analysis?
A) Higher prices induce firms to hire more workers. B) The existing capital stock can be used more intensively. C) Prices and wages are flexible, allowing for needed adjustments. D) In the short run, existing workers can work more hours.
Which of the following tax structures creates a disincentive to earn more?
a. Proportional tax structure b. Regressive tax structure c. Digressive tax structure d. Progressive tax structure e. A combination of proportional and regressive tax structure