A Flat or Horizontal Demand Curve for a Firm Indicates

question 45

Multiple Choice

A flat or horizontal demand curve for a firm indicates that:

• A) The firm has no market power.
• B) The law of demand does not apply in the market.
• C) Price equals average total cost.
• D) The firm is a monopoly.

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Definitions:

Compensating Salespeople

The practice of providing monetary and non-monetary rewards to sales staff for their performance and achievements.

Stock Ownership Incentive Plans

Programs designed to give employees the opportunity to buy or receive shares in the company they work for as a form of incentive.

Individual Incentive Plans

Compensation strategies designed to motivate individual employees by providing rewards, typically financial, based on their personal performance or achievements.

Profit-sharing Plans

Employee benefit plans that provide workers with a share of the company's profits based on its quarterly or annual earnings.