Which statement about price taker firms is correct?
a. Price taker firms cannot influence the price in the market.
b. Price taker firms can influence the price in the market.
c. Price taker firms are typically small and privately owned.
d. Price taker firms are typically large and publicly owned.
a. Price taker firms cannot influence the price in the market.
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How does a fall in the money wage rate affect the aggregate supply curve?
What will be an ideal response?
The aggregate demand effect from a rise in government spending is maximized
A) the lower the level of capital mobility. B) the higher the level of capital mobility. C) when the exchange rate floats freely. D) when the rise is matched by a decrease in the money supply.
"Market power" is an expression used to indicate that a firm has
a. the power to sell a given output at whatever price it chooses. b. no freedom from the rigors of intense competition. c. a monopoly over the product it produces. d. enough market share to be somewhat insulated from competition.
Explain why it is the case that the value of intermediate goods produced and sold during the year is not included directly as part of GDP, but the value of intermediate goods produced and not sold is included directly as part of GDP