If a Firm Is a Price Taker, the Demand Curve

question 89

Multiple Choice

If a firm is a price taker, the demand curve faced by the firm is

• A) horizontal.
• B) vertical.
• C) downward sloping.
• D) upward sloping.

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Definitions:

Price Appreciation

The increase in value of an asset or security over time.

Rate Of Return

The positive or negative change in the value of an investment over a designated period, expressed as a portion of the investment's initial outlay in percentage terms.

Previous Trading

Historical trading data including prices, volume, and patterns used to predict future market behavior.

Share

A share represents a unit of ownership in a company or financial asset, entitling the shareholder to a proportion of the profits.