A firm that is a price taker can
A) substantially change the market price of its product by changing its level of production.
B) sell all of its output at the market price.
C) sell some of its output at a price higher than the market price.
D) decide what price to charge for its product.

Question

Quizplus · Accepted Answer

A price taker is a firm that has no control over the market price of its product. This means that the firm can sell all of its output at the market price, but it cannot charge a higher price.

A Firm That Is a Price Taker Can