Price-taking firms i.e., firms that operate in a perfectly competitive market, are said to be 'small' relative to the market. Which of the following best describes this smallness? Options: A . &nbspThe individual firm must have fewer than 10 employees B . &nbspThe individual firm faces a downward-sloping demand curve C . &nbspThe individual firm has assets less than Rs. 20 lakhs D . &nbspThe individual firm is unable to affect market price through its output decisions

Price-taking firms i.e., firms that operate in a perfectly competitive market, a

Question

Price-taking firms i.e., firms that operate in a perfectly competitive market, are said to be 'small' relative to the market. Which of the following best describes this smallness?

Options:

A . The individual firm must have fewer than 10 employees

B . The individual firm faces a downward-sloping demand curve

C . The individual firm has assets less than Rs. 20 lakhs

D . The individual firm is unable to affect market price through its output decisions

Answer: Option D

Submit Your Solution Below and Earn Points !

Next Question

Submit Solution

More Questions on This Topic :

Question 1. Which one of the following is true about Planning Commission?....

Question 2. A firm encounters its 'shutdown point' when....

Question 3. Under ______ market condition, firms make normal profits in the long run.....

Question 4. Economic survey is published by....

Question 5. Larger production of ___ goods would lead to higher production in future....

Question 6. A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is....

Question 7. When ______, we know that the firms are earning just normal profits.....

Question 8. Consumer surplus is highest in case of....

Question 9. The vertical difference between TVC and TC is equal to....

Question 10. The economic analysis expects the consumer to behave in a manner which is....

Chapter 1 - GLOBAL STEEL SCENARIO & INDIAN STEEL INDUSTRY Part 1 : (13-04-2024) INDUSTRY AND COMPANY AWARENESS (ICA)

Direction Sense Test Part 1 Reasoning (Hindi)

Chapter 1 - RMHP / OHP / OB & BP Part 1 : (14-02-2024) GPOE

Cube & Cuboid Part 1 Reasoning (Hindi)

Data Interpretation (DI) Basic Concept Reasoning (Hindi)

Counting Figures Part 1 Counting Of Straight Lines Reasoning (Hindi)

Sail E0 free webinar Webinars

Real Numbers Part 7 Class 10 Maths

Real Numbers Part 1 Class 10 Maths

Polynomials Part 1 Class 10 Maths

DSP Combined 1 Free Revision Test SAIL JO E-0

GPOE / GPA Combined 1 Free Revision Test SAIL JO E-0

BSP Plant Specific Review Test SAIL JO E-0

BSL Combined 1 Free Revision Test SAIL JO E-0

GFM Combined 1 Free Revision Test SAIL JO E-0

Submit Solution

More Questions on This Topic :

Latest Videos

Latest Test Papers