If a Firm Faces a Horizontal Demand Curve

question 10

Multiple Choice

If a firm faces a horizontal demand curve

• A) when it increases its price, its revenues will rise.
• B) increases in revenues are possible if it increases its price.
• C) increases in revenues are possible without reductions in its price.
• D) it is the only seller of the product in a given market.
• E) industry and product demand curves are identical.

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Definitions:

Mere Observation

The process of learning or gaining insights by simply watching events or phenomena without direct involvement or interaction.

Violent Model

An example or representation that exhibits aggression and is used as a behavior guide in observational learning.

Aggression

Actions aimed at causing injury or frightening other individuals.

Modelling

A process of learning that occurs through observing and imitating the behavior of others.