A price taker is a firm which:
A) must accept the market determined price for its product
B) has a strong incentive to advertise
C) has control over its prices
D) has its prices fixed by a regulatory body

Question

Quizplus · Accepted Answer

A price taker is a firm that must accept the market-determined price for its product because it operates in a perfectly competitive market where individual firms have no control over the market price.

A Price Taker Is a Firm Which