**Understanding Price Takers****What is a price taker?**A price taker is:- **A.** A firm with a downward-sloping demand curve.- **B.** A firm that is unable to affect the market price.- **C.** A firm with a perfectly inelastic demand curve.- **D.** A firm that has the ability to charge a price greater than marginal cost.- **E.** A firm that does not seek to maximize profits.**When are firms likely to be price takers?**A firm is likely to be a price taker when:- **A.** It sells a differentiated product.- **B.** Barriers to entry are substantial.- **C.** It has market power.- **D.** It represents a small fraction of the total market.- **E.** Firms in the industry collude.

Q1) price taker is a firm who is so small as a unit in a market that the firm has no control on the…

What is a price taker? A price taker is O A. a firm with a downward-sloping demand curve. O B. a firm that is unable to affect the market price. Oc. a firm with a perfectly inelastic demand curve. O D. a firm that has the ability to charge a price greater than marginal cost. O E. a firm that does not seek to maximize profits. When are firms likely to be price takers? A firm is likely to be a price taker when O A. it sells a differentiated product. O B. barriers to entry are substantial. OC. it has market power. O D. it represents a small fraction of the total market. O E. firms in the industry collude.

What is a price taker? A price taker is O A. a firm with a downward-sloping demand curve. O B. a firm that is unable to affect the market price. Oc. a firm with a perfectly inelastic demand curve. O D. a firm that has the ability to charge a price greater than marginal cost. O E. a firm that does not seek to maximize profits. When are firms likely to be price takers? A firm is likely to be a price taker when O A. it sells a differentiated product. O B. barriers to entry are substantial. OC. it has market power. O D. it represents a small fraction of the total market. O E. firms in the industry collude.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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