When We Say That a Firm Is a Price Taker

question 8

Multiple Choice

When we say that a firm is a price taker, we are indicating that the

• A) firm takes the price established in the market then tries to increase that price through advertising.
• B) firm can change output levels without having any significant effect on price.
• C) demand curve faced by the firm is perfectly inelastic.
• D) firm will have to take a lower price if it wants to increase the number of units that it sells.

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