Every Firm That Has the Ability to Affect the Price

question 257

Multiple Choice

Every firm that has the ability to affect the price of the good or service it sells will

• A)have a perfectly elastic demand curve.
• B)have a marginal revenue curve that lies below its demand curve.
• C)earn a short-run profit but break even in the long run.
• D)shut down in the short run.

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Definitions:

Higher Needs

In Maslow's hierarchy, these are the psychological needs that appear after basic physical needs are met, including esteem and self-actualization needs.

Lower Needs

Typically refers to the more basic needs in Maslow's hierarchy, such as physiological needs and safety, which must be met before higher-level needs can be addressed.

Survival

The act of continuing to live or exist, typically in spite of an accident, ordeal, or difficult circumstances.

Human Strengths

The innate capacities and positive qualities that enable individuals to thrive and overcome challenges.