If a Firm Is Able to Set Price

question 76

Multiple Choice

If a firm is able to set price,

• A)it is a monopoly.
• B)its marginal revenue is constant.
• C)it sells its output at a constant price.
• D)it faces a downward-sloping demand curve.

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Definitions:

Value-Added

The enhancement added to a product or service by a company before offering it to customers, representing the difference between the cost of inputs and the value of outputs.

Lean Principles

A management philosophy focused on minimizing waste within manufacturing systems while simultaneously maximizing productivity.

Service Businesses

Companies that provide intangible products or services, such as consulting, repair, or maintenance.

Non-Value-Added

Processes or activities that do not add value or contribute to the customer's perceived value of a product or service.