3. A price taker is a firm that A) must lower its price if it wants to sell more output. B) must accept the price set by a monopoly. C) cannot influence the price of its product. D) E) is experiencing economic losses. can raise its price if it lowers output. 5. A natural monopoly produces a good with many close substitutes. faces a horizontal demand curve. A) B) C) must sell each unit of its output for the same price to all its customers. D) is protected by a barrier to entry. E) can meet the entire market demand at a lower cost than two or more firms can. 6. When smaller firms follow a \"price leader\" in a market, they are acting like A) oligopolists. D) perfect competitors. B) monopolists. E) a cartel. C) monopolistic competitors