If a Firm Faces a Perfectly Elastic Demand for Its

question 43

Multiple Choice

If a firm faces a perfectly elastic demand for its product,then

• A)it is not a price taker.
• B)it will want to lower its price to increase sales.
• C)it will want to raise its price to increase total revenue.
• D)its marginal revenue curve is horizontal at the market price.
• E)it will always make zero economic profit.

Understand the forms and documentation required for employee income tax filing and payroll processing.

Calculate net amount payable to employees considering hourly rates, overtime, and withholdings.

Comprehend the components and effects of employer payroll taxes on financial statements.

Recognize the treatment and recording of employee benefits, such as vacation pay and pension rights.

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Definitions:

Lowest Price

The minimum amount at which a product or service is sold, often determined by costs, competition, and market demand.

Long Run

A period in which all factors of production and costs are variable, allowing full adjustment to changes.

Firm's Profit

The financial gain achieved by a firm when its total revenues exceed its total expenses.

Profitable Output

The level of production at which a business or entity maximizes its profit, considering its cost structure and market demand.