A Price Taker Is a Firm That

question 93

Multiple Choice

A price taker is a firm that

• A)must lower its price if it wants to sell more output.
• B)sets the market price.
• C)cannot influence the market price.
• D)is incurring an economic loss.
• E)can raise its price if it lowers output.

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Definitions:

Authorized

Officially given permission or power to do something, often used in legal and corporate contexts.

Issued

Refers to the process of allocating or distributing something, such as shares or official documents, to individuals or entities.

Outstanding

Refers to shares that have been issued by a company and are currently held by investors, including shares held by the public and restricted shares held by company insiders.

Nonoperating Income

Income that a company makes from activities not related to its core business operations, such as investment income or profits from the sale of assets.