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:

Personal Control

The extent to which an individual believes they can control events that affect them.

Social Loafing

The event where group members apply lesser effort to reach a goal than they would if they were working solo.

Accountable

Being responsible or answerable for actions or decisions, implying a willingness to accept and report on the outcomes of one's actions or decisions.

Dispensable

Capable of being dispensed with; not essential or necessary.