Why is a perfectly competitive firm said to be a price taker?
a. It produces such a good which is not produced by any other firm in the market.
b. It faces a downward sloping market demand curve.
c. The firm's individual production is insignificant relative to the production in the industry.
d. There are no barriers to the entry of new firms in the industry.
e. The firm's marginal-revenue curve is downward sloping.
c
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A perfectly competitive firm in long-run equilibrium produces output at the lowest possible average total cost
Indicate whether the statement is true or false
In the aggregate expenditures model, if an economy operates below equilibrium GDP, there will be unplanned inventory depletion
a. True b. False Indicate whether the statement is true or false
The resource market is important from a macroeconomic perspective because
a. it coordinates the allocation of productive resources and determines the costs of production. b. it determines the interest rates faced by borrowers and lenders. c. inflation rates are set in the resource market by the government. d. resource prices determine the position of the long-run aggregate supply curve.
Egypt has exports of $500 million and imports of $750 million. Egypt
a. sells more overseas then it buys from overseas; it has a trade deficit. b. sells more overseas then it buys from overseas; it has a trade surplus. c. buys more from overseas then it sells overseas; it has a trade deficit. d. buys more from overseas then it sells overseas; it has a trade surplus.