If a Firm Can Change Market Prices by Altering Its

question 69

Multiple Choice

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

• A)Has market power.
• B)Faces a horizontal demand curve.
• C)Is a price taker.
• D)Is a competitive firm.

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Definitions:

Market Conversion Value

The worth of a convertible security if it were to be converted into shares of the underlying stock, typically at the current market price of the shares.

Par Value

The nominal or face value of a bond, stock, or other financial instrument, serving as a reference point for its worth.

Current Market Price

The price at which an asset or security can currently be bought or sold in the market.

Effective Annual Yield

The interest rate on an investment, expressed on an annual basis, taking into account the effect of compounding.