In a price-taker market, profits are
A) the result of consumers being charged arbitrarily high prices.
B) a reward for creating value.
C) the result of barriers to entry into the market.
D) a signal that fewer resources are needed in a market.

Question

Quizplus · Accepted Answer

In a price-taker market, profits are a reward for creating value because firms can only earn profits by efficiently producing goods that consumers value at a price equal to the market price.

In a Price-Taker Market, Profits Are