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.

Question

Quizplus · Accepted Answer

If a firm has the ability to change market prices by altering its output, it means that the firm has some degree of control or influence over the market. This is known as market power, and it allows the firm to act as a price setter rather than a price taker (which would be the case if it faced a horizontal demand curve).

If a Firm Can Change Market Prices by Altering Its