If a Firm Can Raise Market Price by Reducing Its

question 100

Multiple Choice

If a firm can raise market price by reducing its output,then

• A)It has no market power.
• B)It faces a downward-sloping demand curve.
• C)It is a price taker.
• D)It engages in marginal cost pricing.

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Definitions:

Illegitimate Power

Power that is gained or exercised through unjust, non-consensual, or unethical means, often lacking recognized or legitimate authority.

Vertical Mosaic

A concept that describes a society where individuals and groups are ranked according to various hierarchical social characteristics like ethnicity, income, and occupation.

Elite Theory

A theory in sociology and political science that posits a small minority, consisting of members of an economic and social elite, holds the most power and thus governs the majority.

Autocracy

A form of government in which a single individual holds unlimited power, making decisions without substantial consultation or democratic participation.