Consumers and firms are known as price takers only if

Name: Consumers and firms are known as price takers only if
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Consumers and firms are considered as price takers if they cannot affect the market price, meaning they have to accept the market price as it is determined by supply and demand forces. This is in contrast to price setters who have the ability to influence the market price through their actions. Therefore, option C), "they cannot affect the market price," is the correct choice.

Consumers and Firms Are Known as Price Takers Only If