A Firm in a Price-Taker Market

question 122

Multiple Choice

A firm in a price-taker market

• A) must take the price that is determined in the market.
• B) must reduce its price if it wants to sell a larger quantity.
• C) must be large relative to the total market.
• D) can exert a major influence on the market price.

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Definitions:

Credit Sale

A transaction where the goods or services are provided to the customer with the agreement that payment will be made at a later date.