In the Price-Taker Model, What Impact Does the Individual Firm

Multiple Choice

In the price-taker model, what impact does the individual firm have on the price of its product?

A) The firm must accept the price determined in the market if it is going to sell its product.
B) The firm may raise or lower its price to a small extent, but sales revenues will tend to be the same regardless of price.
C) The firm may raise its price and, thereby, increase its revenues.
D) The firm may raise or lower its price to a considerable extent, but sales revenues will tend to be the same regardless of price.