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.
-Why is a perfectly competitive firm said to be a price taker?

A) It produces such a good which is not produced by any other firm in the market.
B) It faces a downward sloping market demand curve.
C) The firm's individual production is insignificant relative to the production in the industry.
D) There are no barriers to the entry of new firms in the industry.
E) The firm's marginal-revenue curve is downward sloping.