A firm that considers price as a given and chooses quantity of output accordingly is called a
A)profit-maximizer.
B)quantity-setter.
C)market-taker.
D)monopoly.
E)price-taker.

Question

Quizplus · Accepted Answer

A firm that considers price as a given and chooses quantity of output accordingly is called a price-taker. This means that the firm doesn't have enough market power to influence the market price and must accept the equilibrium price determined by the market forces of supply and demand.

A Firm That Considers Price as a Given and Chooses