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Which Statement Is True

Question 7

Multiple Choice

Which statement is true?


A) The market supply curve is derived assuming consumers are price takers, but that firms in the market are not price takers.
B) The supply curve for an individual firm is derived assuming the firm itself is a price taker, but this is not true for the derivation of the market supply curve.
C) The supply curves for both an individual firm and for the market are derived assuming all firms are price takers.
D) All of the above.
E) None of the above.

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