We know that a perfectly competitive firm is a price taker because O A) MC and ATC are equal at the profit-maximizing amount of output. B) its MC curve slopes upward. C) its demand curve is horizontal. D) it has no supply curve. E) its ATC curve is U-shaped.

We know that a perfectly competitive firm is a price taker because O A) MC and ATC are equal at the profit-maximizing amount of output. B) its MC curve slopes upward. C) its demand curve is horizontal. D) it has no supply curve. E) its ATC curve is U-shaped.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

We know that a perfectly competitive firm is a price taker because
A) MC and ATC are equal at the profit-maximizing amount of output.
B) its MC curve slopes upward.
C) its demand curve is horizontal.
D) it has no supply curve.
E) its ATC curve is U-shaped.

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