In Price-Taker Markets, Individual Firms Have No Control Over Price

question 12

Multiple Choice

In price-taker markets, individual firms have no control over price. Therefore, the firm's marginal revenue curve is

• A) a downward-sloping curve.
• B) indeterminate.
• C) constant at the market price of the product.
• D) precisely the same as the firm's total revenue curve.

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Definitions:

Supply Curves

Graphs showing the relationship between the price of a good and the quantity of that good a supplier is willing to offer for sale, holding all else constant.

World Price

The international market price of a good or service, influenced by global supply and demand.

Domestic Demand

The aggregate need for products and services inside a nation.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of that good a seller is willing to supply.