A perfectly competitive firm is a price taker because:
a) It has no control over the market price of its product.
b) Market demand is downward sloping.
c) It has market power.
d) Its products are differentiated.
Answer: a) It has no control over the market price of its product.
You might also like to view...
What is a cartel?
What will be an ideal response?
Which of the following can be a solution to the "free riding problem" by discount retailers?
a. Awarding retailers exclusive territories b. Setting minimum prices for items sold by such specialty retailers c. All of the above d. None of the above
Those who are considered the transient poor are defined as those who spend:
A. two or more years in poverty. B. at least two consecutive months within a year in poverty. C. at least six consecutive months within a year in poverty. D. three or more years in poverty.
Ceteris paribus means
A) making all the necessary changes. B) other things constant. C) the assumption of rational behavior D) as realistic as it can be