A price taker is a firm that
A) seeks to maximize revenue rather than profit.
B) cannot influence the market price.
C) searches for the best price and then takes the highest profits possible.
D) buys inputs for firms.
Answer: B) cannot influence the market price.
You might also like to view...
The menu cost theory states that
A) wages depend on the productivity of workers. B) economic agents quickly learn the likely responses of the Fed to changes in unemployment. C) the economy is characterized by perfect competition. D) prices are not fully flexible because it is costly for firms to change prices every time there is a demand change.
Which of the following is true for the world as a whole?
a. During the past 200 years, the income per person of the world has increased sharply, but there has been little change in the years of life expectancy at birth. b. During the past 200 years, the years of life expectancy at birth has increased sharply, but there has been little change in the world's income per person. c. During the 800 years between 1000 and 1800, the increases in both world income per person and life expectancy at birth were small, but both of these indicators have increased sharply during the past 200 years. d. Both income per person and life expectancy rose steadily during 1000-1800, but neither of these indicators have increased much during the past 200 years as the population of the world has become larger and larger.