Price takers are individuals or firms in a competitive market who cannot affect the market price and must accept it as given. They have no market power and are therefore subject to the forces of supply and demand.

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Price Takers

Question 8

Multiple Choice

Price takers:

A) are those individuals in a competitive market who must accept the market price as given.
B) is a term that implies that whatever the price is, an individual will accept it as fair.
C) is a term that essentially means that prices have nothing to do with individuals or groups.
D) is a term that refers to buyers not sellers.

Correct Answer: