One Implication of the Shape of the Demand Curve Facing

question 107

Multiple Choice

One implication of the shape of the demand curve facing a perfectly competitive firm is that:

• A)if the firm increases its price above the market price, it will earn higher revenue.
• B)if the firm decreases its price below the market price, it will earn higher revenue.
• C)if the firm increases its price above the market price, it will earn zero revenue.
• D)the market would be unable to reach a new equilibrium if demand changed.

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Definitions:

Job Dissatisfaction

The feeling of unhappiness or discontent with one's job, stemming from various factors such as working conditions, pay, or lack of fulfillment.

ERG Theory

A motivational theory developed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth.

Activated Needs

Activated needs are desires or requirements that have been triggered by internal or external stimuli, prompting individuals to take action.

Acquired Needs Theory

A psychological theory suggesting that individuals acquire certain needs through their life experiences, such as the needs for achievement, affiliation, and power, which influence their motivation and behavior.