Tandy's Teas sells iced tea in a perfectly competitive market. Tandy knows that if she tries to sell iced tea at more than $1 per glass, people will buy iced tea from her competitors. What kind of a firm is Tandy's Teas?

Question

Quizplus · Accepted Answer

Tandy's Teas is a price taker because it operates in a perfectly competitive market, meaning it must accept the market price for its product without having the ability to influence that price.

Tandy's Teas Sells Iced Tea in a Perfectly Competitive Market