You
are given that the market demand curve of a particular good is
downward-sloping. Based on this information, which of the following statements
is correct regarding a price-taking firm in the market for the good?

Question

Answer

The
firm chooses the price that maximises its profit

Answer

A
price taking firm cannot be profit-maximising.

Answer

The
demand curve faced by the individul firm is downward-sloping.

Answer

The
firm chooses its output where the marginal cost equals the price.

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You are given that the market demand curve of a particular good is downward-slop...

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