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

question 194

Multiple Choice

Which of the following best explains why a firm in a competitive price-taker 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:

Epinephrine

Epinephrine, also known as adrenaline, is a hormone and neurotransmitter involved in regulating heart rate, blood vessel and air passage diameters, and metabolic shifts.

Norepinephrine

A neurotransmitter involved in arousal, alertness, and the fight-or-flight response, influencing mood and blood pressure among other bodily functions.

E-cigarettes

Electronic devices that simulate tobacco smoking by producing an aerosol, often containing nicotine, inhaled by the user.

Stimulants

Drugs that increase alertness, attention, and energy by elevating the levels of key chemicals in the brain and other parts of the body.