If a firm can change market prices by altering its output,then it
A)Has market power.
B)Faces a horizontal demand curve.
C)Is a price taker.
D)Is a competitive firm.

Question

Quizplus · Accepted Answer

The ability to change market prices by altering output is a sign of market power, which means the firm has some degree of control over the market in which it operates. Therefore, choice A is the best answer. Choices B, C, and D do not accurately reflect a firm with market power.

If a Firm Can Change Market Prices by Altering Its