A Price-Taking Firm Cannot Affect Its Own Output Price Because

question 176

Multiple Choice

A price-taking firm cannot affect its own output price because

• A)price is determined by consumers, not producers.
• B)market demand is perfectly elastic; that is, even a tiny increase in price results in zero quantity demanded.
• C)it is only one firm among many, so the price is determined in the market as a whole.
• D)consumer preferences dictate a single price in a competitive market.
• E)of government statutes, such as price floors and price ceilings.

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Definitions:

Specified Threshold

A predetermined level or point at which an action is triggered or a condition changes, often used in decision-making processes.

Supply Chain Manager

A professional responsible for overseeing and managing a company's supply chain and logistics strategy and operations.

Safety Inventory

Extra inventory held by a company to prevent stockouts caused by uncertainties in demand or supply, ensuring product availability.

Product Availability

The extent to which a product can be purchased or obtained when desired by a customer.