Suppose You Were Asked to Determine Whether a Firm Was

question 68

Multiple Choice

Suppose you were asked to determine whether a firm was a price taker or a competitive price searcher by looking at a graph of the firm's cost and revenue curves. The key is that for the competitive price searcher,

• A) the firm's marginal revenue curve lies above and to the right of the demand curve, not below and to the left.
• B) there are only total costs, not variable costs, on the graph.
• C) the firm's demand curve is downward sloping, not a horizontal line.
• D) all of the above are true.

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Definitions:

Management

The process of dealing with or controlling things or people, which includes planning, organizing, leading, and controlling an organization’s resources to achieve specific goals.

Universal Declaration

Often refers to the Universal Declaration of Human Rights adopted by the United Nations General Assembly, outlining basic human rights to be universally protected.

Human Rights

The fundamental rights and freedoms that every person is entitled to, regardless of nationality, place of residence, sex, national or ethnic origin, color, religion, language, or any other status.

Trade Unions

Organizations formed by workers from related fields that work toward protecting their mutual interests and improving conditions such as wages, working hours, and workplace safety.