As Long as the Output of an Individual Firm in a Perfectly

question 56

Multiple Choice

As long as the output of an individual firm in a perfectly competitive market is very small with respect to the total market for the product:

• A) each individual firm can change price only by a small degree.
• B) each individual firm sells a slightly differentiated product.
• C) each individual firm takes the price as a "given".
• D) firms are able to get together and effectively agree on restricting quantity supplied and raising prices.
• E) depending on market conditions, the "given" price may be above or below the industry equilibrium price.

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Definitions:

Model Rules

A set of ethical guidelines adopted by some legal associations as a framework for professional conduct.

Confidentiality Rule

A legal or ethical principle that requires individuals or entities to keep certain information secret and not disclose it to unauthorized parties.

Harm To Persons

Any physical, psychological, or emotional injury inflicted upon an individual.

Walling-Off Procedures

Strategies used by organizations to prevent the exchange of sensitive information between departments or team members to avoid conflicts of interest.