Asked by Shaniqua Esdaille on May 05, 2024
Verified
A price taker is:
A) a firm that accepts different prices from different customers.
B) a consumer who accepts different prices from different firms.
C) a perfectly competitive firm.
D) a firm that cannot influence the market price.
E) both C and D
Price Taker
Firm that has no influence over market price and thus takes the price as given.
Competitive Firm
A company operating in a market where it must compete with other firms for customers, often leading to innovation and efficient practices.
Market Price
The ongoing market rate for buying or selling an asset or service.
- Familiarize oneself with the properties and assumed conditions of perfectly competitive markets.
Verified Answer
GM
Ghaleb MekdadMay 09, 2024
Final Answer :
E
Explanation :
A price taker is a perfectly competitive firm that cannot influence the market price, meaning it must accept the market price as given. This is characteristic of both perfectly competitive firms and firms that cannot influence market prices, making both C and D correct.
Learning Objectives
- Familiarize oneself with the properties and assumed conditions of perfectly competitive markets.