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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Definitions:

Preparation Stage

A phase in behavior change models where individuals get ready to change their habits or behaviors within the near future.

Maintenance Stage

A phase in the transtheoretical model where individuals sustain their behavior change over time and work to prevent relapse.

Transtheoretical Model

A theory of behavioral change that assesses an individual's readiness to act on a new healthier behavior, and provides strategies, or processes of change to guide the individual through the stages of change to Action and Maintenance.

Enabling Factors

Conditions or elements that facilitate the accomplishment of an action or the attainment of a goal, making processes easier or possible.