45. Price-taking firms i.e., firms thatoperate in a perfectly competitivemarket, are said to be 'small'relative to the market. Which of thefollowing best describes thissmallness?A. O The individual firm must have fewerthan 10 employeesB. O The individual firm faces adownward-sloping demand curveС.The individual firm has assets lessthan Rs. 20 lakhsD.The individual firm is unable toaffect market price through itsoutput decisions

To find : Which is condition of smallness.

Answered: . Price-taking firms i.e., firms that…

. 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?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition

Section: Chapter Questions

Problem 6E

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