Price is taken to be a "given" by an individual firm selling in a purely competitive market because:
A. The firm's demand curve is downward-sloping
B. There are no good substitutes for the firm's product
C. Each seller supplies a negligible fraction of total market
D. Product differentiation is reinforced by extensive advertising
C. Each seller supplies a negligible fraction of total market
You might also like to view...
Two variables are related by an accounting identity when:
A) the two variables are mathematically identical. B) the two variables have a negative relationshi
Which of these is true of the expected price level in a labor market? a. It is the equilibrium price level in the short run
b. It determines the actual price level in the short run. c. It determines the actual price level in the long run. d. It allows firms and resource owners to make long-term wage agreements. e. The difference between the expected and actual price levels is equal to the actual inflation rate.