Historically, most economists have referred to markets where firms are price takers as
A) purely competitive markets.
B) monopoly markets.
C) open-door markets.
D) price-searcher markets.

Question

Quizplus · Accepted Answer

Purely competitive markets are characterized by a large number of firms and buyers, standardized products, easy entry and exit, perfect information, and the absence of market power. In such markets, firms are price takers because they have no control over the price and must accept the prevailing market price to sell their products. In contrast, monopoly markets are characterized by a single firm that controls the market and can set the price. Open-door markets and price-searcher markets are not commonly used terms in economics.

Historically, Most Economists Have Referred to Markets Where Firms Are