Which of the Following Statements Best Reflects a Price-Taking Firm

question 198

Multiple Choice

Which of the following statements best reflects a price-taking firm?

• A)If the firm were to charge more than the going price, it would sell none of its goods.
• B)The firm has an incentive to charge less than the market price to earn higher revenue.
• C)The firm can sell only a limited amount of output at the market price before the market price will fall.
• D)Price-taking firms maximize profits by charging a price above marginal cost.

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