When a Firm Is Referred to as a "Price Taker

question 40

Multiple Choice

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

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

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