The typical firm in the US economy
A)has some degree of market power.
B)sells its product for a price that is equal to the marginal cost of producing the last unit.
C)is perfectly competitive.
D)is a monopoly.

Question

Quizplus · Accepted Answer

The typical firm in the US economy has some degree of market power, meaning that it has the ability to influence the price of its product or service. This could be due to brand recognition, patents, or other factors that differentiate it from its competitors. It is not perfectly competitive, where there are many firms producing identical products with no market power, and it is not a monopoly, where there is only one firm with complete market power. The typical firm also does not sell its product for a price equal to marginal cost, as it seeks to maximize profits by pricing above marginal cost.

The Typical Firm in the US Economy