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.

---

Definitions:

Resource Use

The way in which human societies utilize natural resources to fulfill their needs and wants.

Real Cost

The total economic cost of production, considering all direct and indirect resources consumed, including opportunity costs.

Commodity Resources

Basic goods used in commerce that are interchangeable with other goods of the same type.