When consumers act as price-takers, we say that they behave
A) cooperatively.
B) competitively.
C) monopolistically.
D) irrationally.
E) rationally.

Question

Quizplus · Accepted Answer

When consumers act as price-takers, they are accepting the price set by the market and do not have the ability to influence it. This is typical in a competitive market, where there are many buyers and sellers and no one has sufficient market power to affect the price. Therefore, the best choice is B, as it refers to a competitive behavior.

When Consumers Act as Price-Takers, We Say That They Behave