If a company is a price-taker, which of the following is probably TRUE?

Question

Quizplus · Accepted Answer

A price-taker is a company that has no control over the prices of the goods or services it sells. This typically happens in highly competitive markets where the price is set by the market, and all competitors need to accept the same price. Therefore, option A is the correct answer. Option B is incorrect because a company with a unique product could potentially have more pricing power. Option C is incorrect because a price-taker does not have the flexibility to set prices, while option D is incorrect because a company that clearly differentiates its product from competitors may have more pricing power in the market.

If a Company Is a Price-Taker, Which of the Following