A Firm That Is a Price Taker Will Not Sell

Multiple Choice

A firm that is a price taker will not sell any of its product for less than the equilibrium price because

A) it is against the law to do this.
B) it can sell all it can produce at the equilibrium price.
C) this would invite competition from outside the market and end up reducing the profits of the firm.
D) this would be breaking the cartel agreement that price-taker firms often enter into.
E) none of the above