Economy, asked by reetusachdevani15, 4 months ago

is a firm under perfect competition a price taker or a price maker? justify your answer

Answers

Answered by Anonymous

6

A perfectly competitive firm is known as a price taker, because the pressure of competing firms forces them to accept the prevailing equilibrium price in the market. If a firm in a perfectly competitive market raises the price of its product by so much as a penny, it will lose all of its sales to competitors.

Answered by Anonymous

2

A perfectly competitive firm is known as a price taker, because the pressure of competing firms forces them to accept the prevailing equilibrium price in the market. If a firm in a perfectly competitive market raises the price of its product by so much as a penny, it will lose all of its sales to competitors.

Previous Question

Next Question

Similar questions

Math, 2 months ago

A pen is drawn at random from a mixture of 12 defective pens and 132 good pens. Determine the probability that the pen taken out is good one.

English, 2 months ago

Tick the correct answers: a. The following can be i) a glass of cold water ii) a window pane in winter iii) water in a hot kettle b. We can predict these things- i) weather ii) illness iii) neither of these c. A geologist is one who studies- i) rocks ii) stars iii) what is earth made of d. A tremor is a kind of i) walking ii) shaking iii) animal Note: It is of no poem....{IQ}...

Math, 2 months ago

(solve this question number b,c) ...

English, 4 months ago

5 sentences of present simple and present perfect with narrations?

English, 4 months ago

5 characteristics of the 'glum-faced' Marshall in 'Hearts and Hands'.

Math, 10 months ago

pls slove. just answer...

English, 10 months ago

using the following points write a paragraph in about 100 words on how your locality looks like a dawn. points ___ your place of safe _ early morning sky __ description of the nature around _ sounds that are heard _reasons for enjoyment _conclusion ...

English, 10 months ago

underline the adverb phrases in the following sentences • She slammed the door in a huff. • We will reconvene earlier than usual. • She took some time off for a much-needed vacation. • At every turn, problems blocked his path. • I saw a lot of trash beside the highway. • He decided to join a gym to get in shape. • We strolled through the gardens very slowly. • He made his decision as...