According to economic theory:

Question

Quizplus · Accepted Answer

In a competitive economy, both consumers and producers are considered price takers, meaning they have little to no control over the market price of goods and services. They must accept the market price set by the forces of supply and demand. Producers aim to maximize profits, while consumers aim to maximize utility (satisfaction) from the goods and services they consume. Option A is not entirely correct as maximizing output depends on the price of inputs and the level of demand for the product. Option B is incorrect as consumers do not aim to maximize profits. Finally, option C is incorrect as neither consumers nor producers are solely price seekers; they are price takers in a competitive market.

According to Economic Theory