When a firm is a price taker,changes in its sales quantity have ______ effect on the price it can charge.
A) a positive
B) a negative
C) no
D) little

Question

Quizplus · Accepted Answer

When a firm is a price taker, it has no control over the market price and must accept the price determined by market forces. Therefore, changes in its sales quantity will not have any effect on the price it can charge.

When a Firm Is a Price Taker,changes in Its Sales