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

question 86

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 to increase sales.
• D) There are no good substitutes for the product supplied by a firm that is a price taker.

Grasp the global challenges of sustainability and the need for sustainable development.

Recognize the role of social movements in pursuing environmental justice.

Understand the concept of ecological footprint and its relevance to environmental sociology.

Identify key figures and their contributions to the field of psychotherapy.

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Definitions:

Brand Loyalty

The tendency of consumers to continually purchase one brand's products over competing brands due to a perceived superiority or emotional attachment.

High Involvement

Refers to a significant investment of time, effort, or money in a decision-making process, often associated with products or services seen as important or risky.

Product Decision

Refers to the process of making choices about the features, design, branding, and positioning of a product in the market.

Hierarchy of Effects

is a model describing the stages a consumer goes through from awareness to knowledge, liking, preference, conviction, and finally purchase.