A "Price Taker" Is a Firm That

question 27

Multiple Choice

A "price taker" is a firm that

• A)does not have the ability to control the price of the product it sells.
• B)does have the ability, although limited, to control the price of the product it sells.
• C)can raise the price of the product (above the market price) and still sell some units of its product.
• D)sells a differentiated product.
• E)none of the above

---

Definitions:

De Jure Corporation

A corporation that has fully complied with all legal requirements for its establishment, and thus has legal recognition.

Corporation by Estoppel

A legal doctrine that prevents a party from denying the corporation's existence if they have dealt with it as if it were a legal corporation.

Subchapter S Corporation

A form of corporation in the United States that is taxed under Subchapter S of the Internal Revenue Code, allowing profits to be taxed at the shareholder level rather than at the corporate level.

Domestic Corporation

A corporation that is incorporated and operates in its country of origin, adhering to the laws and regulations of that country.