A Factor Price Taker Is a Firm That

question 127

Multiple Choice

A factor price taker is a firm that

• A)can sell as many units of its good as it wants without affecting price.
• B)sells fewer units of its good at higher prices than lower prices.
• C)can buy all of a factor it wants at the equilibrium price.
• D)drives up factor price if it buys an additional factor unit.
• E)none of the above

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Definitions:

Financial Statement

Reports that summarize the financial performance, position, and cash flows of a business for a specific period.

Account

An account is a record within an accounting system that is used to store financial transactions of a particular type, such as assets, liabilities, equity, revenues, and expenses.

Withdrawals

Money or other assets taken out from a business by its owner(s) for personal use.

Accounts Receivable

The financial claim a company holds against its customers for sales made on credit, indicating future cash inflows.