Firms that are price takers
a. are small relative to the total market.
b. produce products that are different than their competitors.
c. can sell only a portion of their output at the market price.
d. have downward-sloping demand curves.
A
You might also like to view...
Suppose that opportunity costs in India and Australia are constant. In India, maximum feasible hourly production rates are either 0.3 unit of cloth or 0.2 unit of food
In Australia, maximum feasible hourly production rates are either 0.5 unit of cloth or 0.5 unit of food. It is correct to state that A) India has a comparative advantage in producing cloth. B) India has a comparative advantage in producing both cloth and wheat. C) India has no comparative advantage in producing cloth or wheat. D) Australia has a comparative advantage in producing cloth.
The cartel consisting of Firm A and Firm B can become unstable if: a. Firm A manages to enhance the quality of its product. b. both the firm sell homogeneous products
c. Firm B decides to decrease its output. d. both firms decide to decrease industry output.