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 selling identical products, so any one producer cannot influence the market price. Therefore, each producer must accept the market price and is a price taker. In the automobile market, steel market, and college textbook market, producers may have some power to influence prices due to differentiation and barriers to entry.

In Which of the Following Markets Is a Producer Likely