Asked by joban preet Thind on Jul 16, 2024
Verified
Individuals in a market who must take the market price as given are:
A) quantity minimizers.
B) quantity takers.
C) price takers.
D) price searchers.
Price Takers
Firms or individuals who accept the market price as given and have no influence to change it due to their small market share.
Market Price
The prevailing rate at which a service or asset is traded in the free market.
- Familiarize oneself with the dynamics and ramifications of being a price taker versus a price maker within the context of perfect competition.
Verified Answer
MP
Maulik PatelJul 23, 2024
Final Answer :
C
Explanation :
Price takers are individuals who must accept the prevailing market price as given and cannot influence it in any way. This is in contrast to price searchers who have some ability to influence the price through their actions. Quantity minimizers and quantity takers are not terms typically used in economics.
Learning Objectives
- Familiarize oneself with the dynamics and ramifications of being a price taker versus a price maker within the context of perfect competition.