Which of the following firms best represents a price taker?
A) Microsoft.
B) General Motors.
C) The local McDonald's.
D) A wheat farmer in Manitoba.
E) The Gap.

Question

Quizplus · Accepted Answer

A wheat farmer in Manitoba is a classic example of a price taker because they are a small player in a highly competitive market with little control over the price of their product. They must accept the market price, making them a price taker. The other companies listed are larger and have more control over their pricing, making them less likely to be price takers.

Which of the Following Firms Best Represents a Price Taker