When a Firm Is a Price-Taking Firm

question 23

Multiple Choice

When a firm is a price-taking firm,

• A)the price of the product it sells is determined by the intersection of the market demand and supply curves for the product.
• B)raising the price of the product above the market-determined price will cause sales to fall nearly to zero.
• C)many other firms produce a product that is identical to the output produced by the rest of the firms in the industry.
• D)all of the above

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Definitions:

Market Control

The influence of market competition on the behavior of organizations and their members.

Market Competition

The rivalry among companies selling similar products and services with the goal of achieving revenue, profit, and market share growth.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 aimed at protecting investors from fraudulent accounting activities by corporations.

Top Executives

Senior-level managers and officers in an organization who are responsible for overseeing its strategic direction and making high-level decisions.