Answer to Question #52927 in Microeconomics for Yana

Question

MULTIPLE CHOICE
1. If a firm has no ability to select the price of its product, it:
a. will go out of business due to losses.
b. is a price-maker.
c. cannot maximize profit.
d. has a horizontal individual demand curve.

2. Under perfect competition, which of the following are the same (equal) at all levels of output?
a. Price and marginal cost.
b. Price and marginal revenue.
c. Marginal cost and marginal revenue.
d. All of these.

Answer 1

1. If a firm has no ability to select the price of its product, it:
d. has a horizontal individual demand curve.
Because it is perfectly competitive market.
2. Under perfect competition, which of the following are the same (equal) at all levels of output?
b. Price and marginal revenue.