Under which market form a firm is called a 'price taker' and why? – InterviewSolution

1.

Under which market form a firm is called a 'price taker' and why?

Answer»

A firm is said to be a price taker when it has no option but to accept the market determined price. It happens in a perfectly competitive market.

The price in the market is determined by the industry and no individual firm has significant share in the market as to influence the price.

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