Q:

Price
taker markets differ from price searcher markets because
in a price taker market:
a) Firms produce identical products.
b) Output from one firm has very little effect on
the market price.
c) Sellers face a perfectly elastic (horizontal) demand
curve.
d) All of these are characteristics of a price takers
market.
e) None of these are characteristics of a price takers
market.

 
A:

The correct answer is d.
A price taker is a firm that can alter its rate of
production and sales without significantly affecting
the market price of the product because their output
is small compared to the overall market.
What is
a Price Taker?
-
learn more about a price taker.

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