When a firm is considered to be a "price taker" that means that the firm
A) can charge any price that it wants to charge, that is, "take" any price it wants.
B) pays a fixed price for all of its inputs.
C) will accept ("take") the lowest price that its customers offer.
D) cannot influence the market price of the good that it sells.
D
You might also like to view...
Define utility. What are individual units of utility called?
What will be an ideal response?
One way the government can encourage economic growth is to:
A. ensure legal agreements will be upheld. B. enforce contracts. C. protect property rights. D. All of these actions will encourage economic growth.
The short-run aggregate supply curve is upward sloping for all of the following reasons except:
A. some markets are posted-price markets. B. some firms adjust their markup in response to an increase in demand. C. all inputs are fully utilized in the short run. D. some firms adjust their production in response to an increase in demand.
The marginal revenue product
A. gives the increase in cost when there is an increase in a variable input. B. always increases when there is an increase in a variable input. C. gives the change in total product when an additional unit of a good is hired. D. represents the incremental contribution to the firm's total revenues obtained from an increase in a variable input.