When firms are said to be price takers,what will happen if a firm raises its price

Name: When firms are said to be price takers,what will happen if a firm raises its price
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Question

Quizplus · Accepted Answer

When firms are price takers, they have no market power and must accept the market price in order to sell their goods. If a firm were to raise its price, buyers would likely turn to other firms that offer the same or similar products at a lower price. Therefore, the best choice is A.

When Firms Are Said to Be Price Takers,what Will Happen