Firms for whom the price of the products or services they sell is determined by market conditions and not by the individual decision of the firms are known as

Question

Quizplus · Accepted Answer

Firms that have no control over the price of their products or services and have to accept the market dictated price are known as price-takers. They have to sell their products at the market price to remain competitive and earn a profit. They are not able to set the price for their products or services, unlike price-makers who can set their own prices in the market. Profit-maker is not a term used in economics.

Firms for Whom the Price of the Products or Services