When Firms Are Said to Be Price Takers, It Implies

question 204

Multiple Choice

When firms are said to be price takers, it implies that if a firm raises its price,

• A)buyers will go elsewhere.
• B)buyers will pay the higher price in the short run.
• C)competitors will also raise their prices.
• D)firms in the industry will exercise market power.

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Definitions:

Actively Manage

The proactive and continuous involvement in overseeing and directing operations or activities to achieve specific objectives.

Rationality And Fairness

The principle of making decisions based on logic and impartiality, ensuring equitable treatment for all involved.

Negotiator

A person engaged in negotiations, skilled in reaching agreements or resolving conflicts.

Athlete

An individual who competes in physical sports, often displaying strength, speed, and endurance.