Which of the following is a characteristic of a competitive price-taker market?

A. Profit maximizing firms in the market will expand output until price equals average variable cost.
B. The market demand curve for the product is a horizontal line.
C. There are many firms in the market, each producing a small share of total market output.
D. The product produced by each of the firms is differentiated.


Answer: C

Economics

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Indicate whether the statement is true or false

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What will be an ideal response?

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