Companies Are Price-Takers When

question 81

Multiple Choice

Companies are price-takers when:

• A)it is operating in a highly competitive market.
• B)its product is unique.
• C)it has considerable flexibility in setting prices of its products.
• D)it has very high fixed costs.

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Definitions:

Muffins

Baked goods that are usually sweet, made from batter or dough, and often enjoyed as a breakfast food or snack.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity (such as production of a specific good) more efficiently than another activity.

Compasses

Instruments used for navigation and orientation that show direction relative to the geographic cardinal directions.

Muffins

A small, baked item that is typically sweet, made from batter or dough.