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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Definitions:

Direction of Relationship

In research, refers to how one variable influences or is associated with changes in another variable, indicating whether the relationship is positive or negative.

Hassles

Daily irritations and annoyances that, over time, can contribute to stress and impact overall well-being.

Stress Level

The degree of emotional, psychological, and physical strain or tension experienced by an individual.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.