If a Firm Can Change Market Prices by Altering Its

question 123

Multiple Choice

If a firm can change market prices by altering its output,then it

• A)Has market power.
• B)Faces a flat demand curve.
• C)Is a price taker.
• D)Engages in marginal cost pricing.

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Definitions:

Average Revenue

The amount of income generated per unit of sale, calculated by dividing total revenue by the number of units sold.

Total Revenue

The entire amount of income generated by the sale of goods or services, before any expenses are deducted.

Variable Costs

Costs that vary in direct proportion to the volume of output or production in a company.

Variable Costs

Costs that vary directly with the level of production or service delivery.