Multiple Select QuestionSelect all that applyWhich of the following are factors indicating that a company is a price-taker?Multiple select question.strong competitionproduct not brandedweak competitionproduct not uniqueproduct brandedproduct is unique
Question
Multiple Select QuestionSelect all that applyWhich of the following are factors indicating that a company is a price-taker?Multiple select question.strong competitionproduct not brandedweak competitionproduct not uniqueproduct brandedproduct is unique
Solution
The factors indicating that a company is a price-taker are:
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Strong competition: When there is strong competition in the market, a company cannot set its own prices and has to accept the market price. This is because if they set their prices too high, customers will simply buy from their competitors.
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Product not branded: If a product is not branded, it means that it is not differentiated from other similar products in the market. Therefore, the company cannot charge a premium price for it and has to accept the market price.
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Product not unique: Similar to the above point, if a product is not unique, it means that there are many similar products in the market. Therefore, the company cannot set its own prices and has to accept the market price.
So, the correct answers are "strong competition", "product not branded", and "product not unique".
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