Firms That Exhibit Price-Taking Behavior

question 11

Multiple Choice

Firms that exhibit price-taking behavior

• A)wait for other firms to set price,take it as given,and charge a higher price.
• B)have outputs that are too small to influence market price and thus take it as given.
• C)take pricing behavior into their own hands.
• D)are independently capable of setting price.

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Definitions:

Stressful Stimulus

Any external or internal event or condition that causes stress in an individual, potentially leading to a physiological and psychological response.

Fear of Heights

An anxiety disorder characterized by an irrational and excessive fear of heights, also known as acrophobia.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxiety through gradual exposure to the feared object or situation combined with relaxation exercises.

Placebo Technique

A harmless pill, medicine, or procedure prescribed more for the psychological benefit to the patient than for any physiological effect.