Which of the following best explains why a firm in a perfectly ...

[karlynnae]

Which of the following best explains why a firm in a perfectly competitive market must take the price determined in the market?
 a. The short-run average total costs of firms that are price takers will be constant.
  b. If a price taker increased its price, consumers would buy from other suppliers.
  c. Firms in a price-taker market will have to advertise in order to increase sales.
  d. There are no good substitutes for the product supplied by a firm that is a price taker.

Question 2

Which of the following is true for a lower price elasticity of demand coefficient?
 a. The market is broadly defined.
  b. The quantity demanded is more responsive.
  c. Few substitutes exist.
  d. Many substitutes exist.
  e. All of these.

[Sarahjh]

Answer to Question 1

b

Answer to Question 2

c

[karlynnae]

Great answer, keep it coming

[vickybb89]

Thanks for the timely response, appreciate it