In the economic world of production, there are either price makers or price takers. By price takers we mean that
A) firms buy goods as well as sell them, and when they buy goods at whatever price, they play the role of "takers"
B) firms take control of their own markets, charging whatever price they think the market will bear
C) firms take the market price as given
D) firms create the price and consumers either take it or leave it
E) the market takes whatever price the firms charge, which is how the downward- sloping demand curve is created

Question

Quizplus · Accepted Answer

Price takers are firms that accept the market price as given. They cannot influence the price of the good or service they are selling because their individual production is too small to affect the market price. This is typical in perfectly competitive markets where many firms sell identical products.

In the Economic World of Production, There Are Either Price