To what does the term 'price taker' apply in a perfectly competitive market?
A)Sellers and buyers.
B)Firms but not buyers.
C)Buyers but not sellers.
D)Only the smallest sellers and buyers.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, both sellers and buyers are considered price takers because neither has the power to influence market prices due to the large number of participants and the homogeneous nature of the goods or services offered.

To What Does the Term 'Price Taker' Apply in a Perfectly