Competitive Firms Cannot Individually Affect Market Price Because

question 55

Multiple Choice

Competitive firms cannot individually affect market price because

• A)There is an infinite demand for their goods.
• B)Demand is perfectly inelastic for their goods.
• C)Their individual production is insignificant relative to the production of the industry.
• D)The government exercises control over the market power of competitive firms.

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Definitions:

Medicare

A federal health insurance program in the United States for people aged 65 and older, certain younger people with disabilities, and people with End-Stage Renal Disease.

Medicaid

A government-funded program in the United States that provides health insurance to low-income individuals and families.

Private Sector Cost

The expense associated with goods, services, or activities delivered by businesses not owned or operated by the government.

Tax Compliance

The act of following and meeting all statutory responsibilities in tax reporting, payment, and documentation by individuals or entities.