If a Firm Can Change Market Prices by Altering Its

question 21

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.

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Definitions:

Common Shareholders

Individuals or entities that own common shares in a corporation, granting them voting rights and a share in the company’s profits via dividends.

EPS

Earnings Per Share; a company's profit divided by the outstanding shares of its common stock.

Fiscal Year

A one-year period used by governments and businesses for accounting and financial reporting purposes, which may not coincide with the calendar year.

Economic Decision Makers

Individuals or entities that make choices regarding the allocation of resources, investment, and production within an economy.