If a Firm Has No Ability to Select the Price

question 77

Multiple Choice

If a firm has no ability to select the price of its product, it:

• A) will go out of business due to losses.
• B) is a price-maker.
• C) cannot maximize profit.
• D) has a horizontal individual demand curve.

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Definitions:

Production Possibilities Curve

A graph that shows the maximum number of goods or services that can be produced with limited resources.

Shift Inward

A decrease in the supply or demand of a product, represented by a leftward movement on a graph.

Physical Capital

Refers to the human-made resources used in the production of goods and services, such as machinery, buildings, and equipment.

Inefficiently

In a manner that does not make the best or optimal use of resources, leading to waste or suboptimal outcomes.