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The Demand Curve Faced by an Individual Firm in a Competitive

Question 20

Multiple Choice

The demand curve faced by an individual firm in a competitive market, implies that the firm:


A) can influence the market price.
B) takes the market price as given.
C) can raise the market price of the good by lowering its sales.
D) can increase its profits by raising the price of the good it sells.
E) should reduce its price in order to increase sales.

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