In a perfectly competitive market,_____ are price takers.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, both producers and consumers are price takers. This means that they must accept the prevailing market price and have very little, if any, influence over it. Producers cannot charge a higher price than the market price as there are many other producers offering the same product at the same price. Similarly, consumers cannot negotiate a lower price as there are many other consumers willing to pay the market price. Therefore, producers and consumers in a perfectly competitive market must accept the market price as given and adjust their behavior accordingly.

In a Perfectly Competitive Market,_____ Are Price Takers