A Price-Taking Firm Can Exert No Control Over Price Because

question 4

Multiple Choice

A price-taking firm can exert no control over price because

• A)the firm's demand curve is downward sloping.
• B)of a lack of substitutes for the product.
• C)the firm's individual production is insignificant relative to total production in the industry.
• D)no other firms make a product that is nearly identical to its product.

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Definitions:

Magical Thinking

Belief in causal relationships between actions and events which logically cannot be justified by reason and observation.

Causal Attribution

A mental process of figuring out the reasons behind certain behaviors and outcomes, attributing them to internal or external factors.

Cause-and-Effect

A relationship where one event (the cause) makes another event happen (the effect), establishing a connection between two or more phenomena.

Illusion of Control

The belief that one can exert more influence over events than is actually the case.