Price-Taker
What Does Price-Taker Mean?
1. An investor whose buying or selling transactions are assumed to have no effect on the market.
2. A firm that can alter its rate of production and sales without significantly affecting the market price of its product.
Investopedia explains Price-Taker
1. In the context of the stock market, individual investors are price-takers.
2. Suppose you sell water, which of course is supplied by millions of other places, including the sky. If you decide to set the price of a gallon of your water at $10, you will likely sell nothing because this commodity is readily available elsewhere for a much cheaper price.
