Why is a perfectly competitive firm said to be a price taker?
A) It produces such a good which is not produced by any other firm in the market.
B) It faces the downward sloping market demand curve.
C) The firm's individual production is insignificant relative to production in the industry.
D) There does not exist any barrier to the entry of new firms in the industry.
E) The firm's marginal-revenue curve is downward sloping.
Correct Answer:
Verified
Q1: A perfectly competitive firm's pricing decision depends
Q3: Suppose Atlas Publishing,a perfectly competitive firm,currently produces
Q5: Perfect competition describes firm behavior when:
A)there are
Q5: Scenario 9.2
Consider a publicly held firm (one
Q7: Scenario 9.2
Consider a publicly held firm (one
Q8: For which of the following types of
Q11: Scenario 9.2
Consider a publicly held firm (one
Q13: Scenario 9.2
Consider a publicly held firm (one
Q16: Scenario 9.2
Consider a publicly held firm (one
Q20: Scenario 9.2
Consider a publicly held firm (one
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents