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Which Type of Firm Has No Control Over Its Price

question 113

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Which type of firm has no control over its price


Definitions:

Marginal Cost

The expenditure involved in the production of an extra unit of a good or service.

Elasticity of Demand

An indicator of the degree to which demand for a product changes in response to a variation in its price, shown as a percentage.

Markup

The amount added to the cost price of goods to cover overhead and profit; a percentage over the cost.

Sales Tax

A levy that a government places on the sale of products and services, usually determined as a portion of the selling price.

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