In the Absence of Any Government Regulation on Price,if a Firm

question 75

Multiple Choice

In the absence of any government regulation on price,if a firm has no power to set price on its own,one can safely conclude

• A) the demand curve for the firm's product is horizontal.
• B) there aren't many firms in the industry.
• C) the market is in long-run equilibrium.
• D) the firms in this industry are not profitable.

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Definitions:

Scientific Method

A systematic approach to research where the problem is identified, relevant data are gathered, a hypothesis is formulated from these data, and the hypothesis is empirically tested.

Low-Cost

Pertaining to something that is inexpensive or affordable, often emphasizing efficiency and economy.

Historical Data

Records of past events and conditions, used to analyze trends, understand historical context, or make forecasts.

Scientific Process

A methodical approach to research and experimentation that seeks to understand natural phenomena through observation, experimentation, and data analysis.