Firms That Are Price Takers

question 39

Multiple Choice

Firms that are price takers

• A)must lower their prices to increase sales.
• B)are able to sell a fixed quantity of output at the market price.
• C)can raise their prices as a result of a successful advertising campaign.
• D)are able to sell all their output at the market price.

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Definitions:

Alertness

The quality of being quick to notice and react to opportunities or potential threats.

Scale

The process of increasing or expanding the scope of a company's operations or its ability to serve more customers effectively.

Market Size

The total volume of a product or service that is available for purchase within a particular market, often measured in terms of sales value or volume.

Design Pathway

A pathway that can uncover high-value opportunities because the entrepreneur is focusing on unmet needs of customers, specifically latent needs.