When a Firm Is Referred to as a "Price Taker

question 17

Multiple Choice

When a firm is referred to as a "price taker,"

• A)the firm can alter the market price as it changes its rate of production.
• B)the demand curve that the firm faces is perfectly inelastic.
• C)the firm will be willing to sell an infinite quantity at the market price.
• D)the firm initially takes price as given and tries to influence it through advertising.
• E)the firm can alter its rate of production and sales without affecting the market price of the product.