If a Firm in a Perfectly Competitive Industry Raises Its

question 159

Multiple Choice

If a firm in a perfectly competitive industry raises its price above market price,

• A) total revenue for the firm will increase.
• B) profit will increase.
• C) sales will drop to zero.
• D) demand curves will become downward sloping.

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Definitions:

Social Security Taxes

Taxes imposed by governments to fund social security programs, typically deducted from employee earnings and matched by employers.

Medicare Taxes

Taxes deducted from employees' paychecks and also paid by employers to fund the Medicare program.

Unemployment Compensation

Unemployment compensation is financial support provided by the government to unemployed workers who meet certain eligibility criteria.

Social Security Tax

A payroll tax that funds the Social Security program, which provides benefits for retirees, the disabled, and children of deceased workers.