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

Name: 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
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Question

Quizplus · Accepted Answer

When a firm is a price taker, it has no control over the market price and must accept the prevailing market price. Therefore, changes in its sales quantity have no effect on the price it can charge.

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