Price is taken to be a "given" by an individual firm selling in a competitive market because
A. there are no good substitutes for the firm's product.
B. each producer supplies a negligible fraction of the total market.
C. the firm's demand curve is downward-sloping.
D. product differentiation is reinforced by extensive advertising.
Answer: B
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Refer to Figure 3.1. If Marge confesses to the crime and Homer does not, what is Homer's payout?
A) 1 year B) 2 years C) 7 years D) 15 years
Under the gold standard, a country experiencing a fall in its gold reserves was supposed to:
(a) Expand loans (b) Buy securities (c) Lower discount rates (d) Cut loans
Portfolio investment means buying
A) less than 10 percent of stock shares of of a foreign company. B) more than 50 percent of stock shares of a foreign company. C) a combination of different companies' stock shares. D) bonds through a financial company.
Offering goods that are similar to competitors' products but more attractive in some ways is called:
A. product distinction. B. product differentiation. C. price-point pinning. D. deceptive advertising.