Author Question: The amount of output that a firm decides to sell has no effect on the market price in a competitive ... (Read 157 times)

AEWBW · **on:** Jul 1, 2018

The amount of output that a firm decides to sell has no effect on the market price in a competitive industry because

A) the market price is determined (through regulation) by the government
B) the firm supplies a different good than its rivals
C) the firm's output is a small fraction of the entire industry's output
D) the short run market price is determined solely by the firm's technology
E) the demand curve for the industry's output is downward sloping

Question 2

Which is a stock variable?

A) Labor
B) Profit
C) Income
D) Capital
E) Price