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Firms Are Assumed to Be Price Takers in a Perfectly

Question 1

Multiple Choice

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:

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