Which of the following is the best example of a business firm operating in a competitive price-taker market?
A) a Midwest farmer producing beef cattle
B) a Laundromat located a few blocks from a major university
C) a pizza parlor located in a major metropolitan area
D) a small brewery supplying a local brand of beer
E) Wal-Mart, a large retailer that competes in many markets

Question

Quizplus · Accepted Answer

A Midwest farmer producing beef cattle is the best example of a business firm operating in a competitive price-taker market because agriculture markets, like beef cattle, typically have many producers selling a homogeneous product, making them price takers.

Which of the Following Is the Best Example of a Business