If a price taker in a competitive market is going to maximize profits, he must
A) increase the price of his product.
B) minimize his fixed costs of production.
C) minimize the per-unit cost of producing the good.
D) use the highest valued set of resources to produce his product.

Question

Quizplus · Accepted Answer

A price taker maximizes profits by minimizing per-unit costs, as they cannot influence the market price.

If a Price Taker in a Competitive Market Is Going