The term price takers refers to buyers and sellers in

Question

Quizplus · Accepted Answer

In perfectly competitive markets, buyers and sellers are price takers, meaning they must accept the prevailing market price and cannot influence the price through their individual actions. This is because there are many buyers and sellers in the market, and no single buyer or seller has enough market power to affect the price. In monopolies, the seller has market power and can set the price, while in regulated markets, there are government restrictions on prices. The last option may refer to rationing, which can occur in imperfectly competitive markets.

The Term Price Takers Refers to Buyers and Sellers in