If a Firm in a Perfectly Competitive Market Raises Its

question 42

Multiple Choice

If a firm in a perfectly competitive market raises its price:

• A)it will sell less but earn more revenue.
• B)it will sell less but earn the same revenue.
• C)it will sell exactly the same amount.
• D)whether it sells less or more depends on elasticity.
• E)it will sell nothing.

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Definitions:

De Facto Program

A program or policy that exists in practice and has effects, though it may not have been legally formalized or officially acknowledged.

Nursing Home Residents

Individuals, typically elderly or disabled, who live in a facility providing skilled nursing care and day-to-day living assistance.

Individual Mandate

A requirement, typically within healthcare policy, that individuals must purchase or otherwise obtain a certain good or service, such as health insurance.

Commerce Clause

A provision in the U.S. Constitution that grants Congress the power to regulate trade among the states and with foreign nations.