In the Price-Taker Model, What Impact Does the Individual Firm

question 16

Multiple Choice

In the price-taker model, what impact does the individual firm have on the price of its product?

• A) The firm must accept the price determined in the market if it is going to sell its product.
• B) The firm may raise or lower its price to a small extent, but sales revenues will tend to be the same regardless of price.
• C) The firm may raise its price and, thereby, increase its revenues.
• D) The firm may raise or lower its price to a considerable extent, but sales revenues will tend to be the same regardless of price.

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Definitions:

Social Media

Online platforms that enable users to create, share content, and participate in social networking.

Marketing Mix

The mix of elements a company can manage to encourage consumers to buy its offerings, commonly known as product, price, location, and marketing.

Four Ps

Refers to the marketing mix elements: Product, Price, Place, and Promotion, used to achieve marketing objectives.

Nonprofit Organizations

Organizations that operate for collective, public or social benefit, rather than to generate profit for owners or investors.