Which of the Following Statements Best Reflects a Price-Taking Firm

question 198

Multiple Choice

Which of the following statements best reflects a price-taking firm?

• A)If the firm were to charge more than the going price, it would sell none of its goods.
• B)The firm has an incentive to charge less than the market price to earn higher revenue.
• C)The firm can sell only a limited amount of output at the market price before the market price will fall.
• D)Price-taking firms maximize profits by charging a price above marginal cost.

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Definitions:

Compliments

Positive or flattering comments or gestures that show appreciation, admiration, or praise for someone's qualities, achievements, or performance.

Role Stress

The stress experienced when an individual faces difficulties fulfilling the expectations associated with their role.

Conflicting Expectations

Refers to situations where there are incompatible or opposing expectations placed on an individual or group, often leading to stress or uncertainty.

Communication

The evoking of a shared or common meaning in another person.