At the Equilibrium Price, Business Inventories Are

question 160

Multiple Choice

At the equilibrium price, business inventories are

• A) unstable.
• B) stable.
• C) zero.
• D) growing.
• E) shrinking.

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Definitions:

Monopsony Power

The market power held by a single buyer, allowing them to dictate prices to sellers due to a lack of competition.

Monopoly Power

The ability of a monopolist to significantly control market price and exclude competitors by owning a majority of the market share.

Demand Function

A mathematical relationship expressing the quantity of an item demanded at various prices.

Marginal Costs

The amount spent to produce a further unit of a good or service.