If the Demand Curve Faced by a Firm Is Downward

question 55

Multiple Choice

If the demand curve faced by a firm is downward sloping,we can reasonably believe that the

• A)firm can influence the price of the product it sells.
• B)firm will have no effect on the price of the product it sells.
• C)firm must lower prices if it hopes to increase its profits.
• D)firm's contributions to total output of the product is insignificant.
• E)firm has no control over the price of the product it sells but can vary the output.

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Definitions:

Spirit of Capitalism

A term popularized by sociologist Max Weber to describe the set of values and attitudes endorsing hard work, thrift, and efficiency in one’s calling, which he believed underpinned capitalist societies.

Max Weber

A sociologist, philosopher, and political economist from Germany whose concepts significantly impacted the fields of social theory and research.

Benevolence

The quality of being well-meaning; kindness and generosity toward others.

Religiosity

Refers to how important religion is to people.