A firm is a ______ when it can sell as much as it wants at some given price P,but nothing at any higher price.
A) monopoly
B) oligopoly
C) price taker
D) price setter

Question

Quizplus · Accepted Answer

A firm that can sell as much as it wants at a given price, but nothing at any higher price is a price taker. This means that the firm is not able to influence the market price and must accept it as given. This is usually the case for firms operating in a perfectly competitive market. Monopolies and oligopolies, on the other hand, have the ability to influence prices and are price setters.

A Firm Is a ______ When It Can Sell as Much