When a Firm Is a Price-Taking Firm

question 23

Multiple Choice

When a firm is a price-taking firm,

• A)the price of the product it sells is determined by the intersection of the market demand and supply curves for the product.
• B)raising the price of the product above the market-determined price will cause sales to fall nearly to zero.
• C)many other firms produce a product that is identical to the output produced by the rest of the firms in the industry.
• D)all of the above

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