Suppose that the demand curve for the XYZ Co. slopes downward and to the right. We can conclude that
A. The firm operates in a perfectly competitive market.
B. The firm can sell all that it wants to at the established market price.
C. The XYZ Co. is not a price taker in the market because it must lower the price to sell additional units of output.
D. The XYZ Co. will not be able to maximise profits because price and revenue are subject to change.
Answer:C
Suppose that the demand curve for the XYZ Co. slopes downward and to the right. We can conclude that
A. The firm operates in a perfectly competitive market. B. The firm can sell all that it wants to at the established market price. C. The XYZ Co. is not a price taker in the market because it must lower the price to sell additional units of output. D. The XYZ Co. will not be able to maximise profits because price and revenue are subject to change.