If Firms in a Competitive Market Are NOT Identical, Then

question 52

Multiple Choice

If firms in a competitive market are NOT identical, then the long-run market supply curve will be

• A)horizontal.
• B)upward sloping.
• C)downward sloping.
• D)undetermined.

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Definitions:

Percentage Method

A way of calculating withholding taxes on an employee's pay by using percentages defined by tax tables based on the employee's earnings and filing status.

Federal Withholding

The process by which an employer deducts a portion of an employee's income and pays it directly to the government as an advance payment of the employee's tax liability.

FICA

Federal Insurance Contributions Act, the U.S. law that requires a payroll tax on both employees and employers to fund Social Security and Medicare.

FICA Taxes

Federal Insurance Contributions Act taxes, funding Social Security and Medicare, deducted from employee paychecks and matched by employers.