Why are individual buyers and sellers in perfect competition called price takers?
What will be an ideal response?
They are called price takers because each firm and customer are too small to influence the market price and has to take the market price as given.
Economics
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Why should a perfect competitor produce at which price equals marginal cost?
What will be an ideal response?
Economics
Without more information, the supply and demand model cannot predict the effect on price of:
A. a simultaneous decrease in quantity demanded and increase in quantity supplied. B. a simultaneous decrease in demand and increase in supply. C. a simultaneous increase in demand and increase in supply. D. a simultaneous increase in demand and decrease in supply.
Economics