In which of the following markets is a producer likely to be a price taker?
A)The apple market
B)The automobile market
C)The steel market
D)The college textbook market

Question

Quizplus · Accepted Answer

In the apple market, there are many producers and consumers, and the product is relatively homogeneous, meaning that producers cannot differentiate their product easily. Therefore, any individual apple producer is unlikely to have enough market power to influence the price and must accept the market price as a price taker. In contrast, in markets such as automobiles, steel, and college textbooks, some producers have more market power and can exert some control over the price.

In Which of the Following Markets Is a Producer Likely