Each individual seller in a market cannot influence the market price because each seller represents a very small part of the market. What is the term for a firm in that market?

Question

Quizplus · Accepted Answer

A firm that cannot influence the market price and represents a very small part of the market is known as a price taker. This term is commonly used in the context of perfect competition, where numerous small firms compete against each other without any single firm being able to control the market price.

Each Individual Seller in a Market Cannot Influence the Market