Which of the Following Best Explains Why a Firm in a Perfectly

question 113

Multiple Choice

Which of the following best explains why a firm in a perfectly competitive market must take the price determined in the market?

• A) The short-run average total costs of firms that are price takers will be constant.
• B) If a price taker increased its price, consumers would buy from other suppliers.
• C) Firms in a price-taker market will have to advertise in order to increase sales.
• D) There are no good substitutes for the product supplied by a firm that is a price taker.

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Definitions:

Neuralgia

A condition characterized by sharp, shocking pain that follows the path of a nerve, often due to irritation or damage.

Puberty

The period of physical and sexual maturation in which the child’s body begins to develop into its adult form.

Muscle Mass

The total amount of muscular tissue in the body, often associated with strength and physical fitness.

Body Fat Percentage

A measure of fitness level, indicating the proportion of a person's weight that is comprised of fat in comparison to other body mass.