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The Assumption That Each Firm in a Perfectly Competitive Market

Question 13

Multiple Choice

The assumption that each firm in a perfectly competitive market is a price taker basically means that ________.


A) market price is independent of the level of industry output
B) each firm's supply curve is perfectly elastic
C) the firm can take any price it wants to choose and still sell all its output
D) changes in the output of an individual firm do not affect the market price

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