Firms are assumed to be price takers in a perfectly competitive market because
A) they are not allowed by law to charge any price other than the market price
B) they must accept any price offered by consumers
C) they earn high enough profits at the market price,so they do not want to hurt consumers by raising their prices
D) each firm is too small to influence the market price
E) there are too few buyers in the market to absorb price changes
Correct Answer:
Verified
Q2: The number of sellers in a market
Q3: All of the following are characteristics of
Q4: Firms in a perfectly competitive market cannot
Q5: Which of the following factors would be
Q6: In a perfectly competitive market,the good or
Q7: Which of the following helps to classify
Q8: The characteristics of a market that influence
Q9: Of the following products,which is most standardized?
A)pizza
B)concrete
C)automobiles
D)clothing
E)paintings
Q10: Which of the following is the closest
Q11: The distinguishing characteristics of different market structures
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