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Commerce · Q279

Economics

Graduate and Post Graduate · Commerce · question 279

Q279

Which of the following is not a characteristic of a 'price taker'?

A.
TR = P x Q
B.
AR = Price
C.
Negatively sloped demand
Answer
D.
Marginal Revenue = Price

Answer: Option C

Solution

Answer: Option C
Solution:
Negatively sloped demand is not a characteristic of a 'price taker'. A price taker lacks enough market power. The objective of market to influence the prices of goods or services.