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.

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Definitions:

Lone Pair

A pair of valence electrons in an atom that is not shared with another atom and does not participate in bonding.

Physostigmine

An alkaloid used as a drug to treat glaucoma and anticholinergic poisoning, acting as a reversible cholinesterase inhibitor.

Glaucoma

A group of eye conditions that damage the optic nerve, often associated with increased pressure in the eye.

Basic

A description for substances that have a pH greater than 7 and can accept protons or donate electrons.