In a perfectly competitive market the term "price taker" applies to
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 "price takers" because they accept the market price as given and cannot influence it due to the large number of participants and the homogeneous nature of the product.

In a Perfectly Competitive Market the Term "Price Taker" Applies