When a Firm Cannot Affect the Market Price of the Good

question 70

Multiple Choice

When a firm cannot affect the market price of the good that it sells,it is said to be a:

• A)price taker.
• B)natural monopoly.
• C)dominant firm.
• D)cartel.

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Definitions:

Tangible Asset

Physical assets or property owned by a person or company, such as buildings, machinery, and vehicles.

Physical Existence

The tangible presence of an entity or an asset, capable of being seen or touched.

Capital Expenditures

The costs of acquiring fixed assets, adding to a fixed asset, improving a fixed asset, or extending a fixed asset’s useful life.

Fixed Asset

Long-term tangible property that a company owns and uses in its operations to generate income, such as buildings, machinery, and equipment, which are not expected to be consumed or converted into cash within a year.