If a country is a price taker for a good in the world market,________.

Name: If a country is a price taker for a good in the world market,________.
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Question

Quizplus · Accepted Answer

If a country is a price taker for a good in the world market, then it cannot affect the world prices by its consumption or production decisions. The country has to accept the prices prevailing in the world market and adjust its production and consumption accordingly. Hence, its consumption and production decisions for the good do not affect world prices.

If a Country Is a Price Taker for a Good