Firms are assumed to be price takers in a perfectly competitive market because
a. they are not allowed by law to charge any price other than the market price
b. they must accept any price offered by consumers
c. they earn high enough profits at the market price, so they do not want to hurt consumers by raising their prices
d. each firm is too small to influence the market price
e. there are too few buyers in the market to absorb price changes
D
You might also like to view...
Listening to a political ad or an ad for a new product usually requires:
a. Critical listening b. Intellect c. Emotions d. An extroverted personality
Which of the following would be most appropriate if the Federal Reserve wanted to increase the money supply in order to stimulate the economy?
A. Buy U.S. government securities. B. Force the Treasury to reduce the national debt. C. Raise the discount rate. D. Increase the reserve requirements.