Why is a stock exchange like NASDAQ considered a secondary market? A. It trades the second largest volume of shares in the world. B. The exchange has rules that attempt to ensure that bid and ask prices do not get too far apart. C. Shares sold on it are exchanged between investors without any involvement of the issuing corporation. D. NASDAQ is called a secondary market because NYSE is considered a primary market.

Which of the following statements best reflects a price-taking firm? price-taking firms maximize profits by charging a price above marginal cost. the firm can sell only a limited amount of output at the market price before the market price will fall. if the firm were to charge more than the going price, it would sell none of its goods. the firm has an incentive to charge less than the market price to earn higher revenue.