A Price Taker Is a Firm That

question 93

Multiple Choice

A price taker is a firm that

• A)must lower its price if it wants to sell more output.
• B)sets the market price.
• C)cannot influence the market price.
• D)is incurring an economic loss.
• E)can raise its price if it lowers output.

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Definitions:

Benefits

Various forms of support, often from the government, in the form of cash or services, intended to ensure the welfare and protection of citizens or employees.

Rational Choice

A theory in economics and sociology that explains decisions by individuals as based on the attempt to maximize personal advantage, minimizing disadvantages.

Maximize Benefits

The act of making the best or most effective use of a situation, opportunity, or resource to gain the greatest advantage or value.

Minimize Costs

Strategies or actions taken to reduce expenses and financial outlays in business operations or personal budgets.