A perfectly competitive firm is a _______ ; a monopoly is a _______ .
A) price setter; price setter
B) price taker; price taker
C) price taker; price setter
D) price setter; price taker

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers because they must accept the market price. A monopoly, however, is a price setter because it can influence the market price due to lack of competition.

A Perfectly Competitive Firm Is a _______ ; a Monopoly