Scenario 9.2 Consider a Publicly Held Firm (One Whose Stock Shares Are

Multiple Choice

Scenario 9.2
Consider a publicly held firm (one whose stock shares are traded on the stock exchange) that earned revenue worth $350 million and incurred land, labor, and debt costs worth $320 million. The stockholders who have invested a total of $100 million in this firm could have earned 10 percent return on other comparable investments.
-If an individual firm in a market is a price taker, then:

A) it faces a horizontal demand curve.
B) it is operating in a monopolistically competitive market.
C) it sells its product at the market price that is solely determined by the buyers.
D) it faces a positively sloped marginal revenue curve.
E) it faces significant barriers to exit from the market.