The Suggestion That a Seller Will Try to Set Price

question 52

Multiple Choice

The suggestion that a seller will try to set price based on "what the market will bear" is explicit recognition of the constraint imposed by:

• A)the firm's marginal cost of production.
• B)the price elasticity of demand for that item.
• C)the firm's competitors.
• D)the need for most firms to earn positive economic profits over time if they are to remain in business.

---

Definitions:

Summons

A legal document issued by a court that orders an individual to appear before it at a specific time and place to respond to a legal action or proceeding.

Default Judgment

A court decision in favor of the plaintiff when the defendant fails to respond or appear in court.

Voir Dire

The process of questioning potential jurors to ensure that the jury will be made up of nonbiased individuals.

Jury Selection

The process by which judges and attorneys select a jury from a pool of candidates, typically involving questioning to determine their suitability.