When Economists Say That a Firm Is a "Price Taker

Multiple Choice

When economists say that a firm is a "price taker" they mean that

A) the firm initially takes price as given and tries to influence it through advertising.
B) the firm can alter its rate of production and sales without affecting the market price of the product.
C) at the price prevailing in the market,the firm will be willing to sell an infinite quantity.
D) the demand curve that the firm faces is perfectly inelastic.
E) the firm can alter the market price as it changes its rate of production.