Multiple Choice
Which of the following best explains why a firm in a competitive price-taker market must take the price determined in the market?
A) The short-run average total costs of firms that are price takers will be constant.
B) If a price taker increased its price, consumers would buy from other suppliers.
C) Firms in a price-taker market will have to advertise in order to increase sales.
D) There are no good substitutes for the product supplied by a firm that is a price taker.
Correct Answer:
Verified
Correct Answer:
Verified
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