If Buyers And/or Sellers Are Price Takers, What Can They

question 167

Multiple Choice

If buyers and/or sellers are price takers, what can they do individually?

• A) They have no influence on market price.
• B) They have ultimate control over market price.
• C) Buyers will be able to find prices lower than those determined in the market.
• D) They can somewhat influence the market price.

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Definitions:

Held-to-maturity Securities

These are financial assets that a company has the intent and ability to hold until they mature.

Amortized Cost

The expense of an intangible asset over its useful life.

Investee

An entity in which an investor holds an interest, often evidenced by ownership of shares or securities.

Short-term Investments

Assets that are expected to be converted into cash, sold, or consumed within one year or one business cycle, whichever is longer.