Asked by
Magic Coolbus
on Dec 11, 2024
Verified
Firms that are price takers
A) are small relative to the total market.
B) produce products that are different than their competitors.
C) can sell only a portion of their output at the market price.
D) have downward-sloping demand curves.
Price Takers
Firms or individuals who accept the market price as is because they do not have enough market power to influence the price of the goods or services they sell.
Downward-Sloping Demand
A concept in economics that indicates demand for a good or service decreases as its price increases, assuming all other factors remain constant.
Output
The amount of goods or services produced by a company, industry, or economic system.
- Gain an understanding of the core principles and distinguishing attributes of markets dominated by competition in price-setting.
Verified Answer
SM
Learning Objectives
- Gain an understanding of the core principles and distinguishing attributes of markets dominated by competition in price-setting.