The representative consumer acts competitively
A) when he or she can haggle for a lower price.
B) when he or she is a price-taker.
C) when he or she is a price-maker.
D) if the consumer is large relative to the size of the market.
E) when he or she has to make decisions regarding work and leisure.

Question

Quizplus · Accepted Answer

A representative consumer acts competitively when he or she is a price-taker, which means that the individual has no influence over the market price and must accept it as given. This is the standard assumption in economic models of consumer behavior. The other choices do not accurately describe the concept of a representative consumer acting competitively.

The Representative Consumer Acts Competitively