Which of the Following Best Explains Why a Firm in a Perfectly

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.

Correct Answer:

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