A Firm Facing a Horizontal Demand Curve

question 68

Multiple Choice

A firm facing a horizontal demand curve:

• A)can affect the price it receives for its output.
• B)is likely to price its goods below market price.
• C)faces a perfectly inelastic demand curve for its product.
• D)cannot increase its output even if it wants to.
• E)can increase its output as much as it wants at a given price.

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Definitions:

Antagonist

A substance that acts against and blocks an action by attaching to and inhibiting the function of a receptor.

Prime Mover

The muscle responsible for most of the movement when a body movement is produced by a group of muscles.

Agonist

A chemical or drug that binds to receptors in the body and triggers a response, often mimicking the action of naturally occurring substances.

Biceps Brachii

A major muscle in the upper arm responsible for flexing the elbow and rotating the forearm.