Examlex
Dawn wanted to buy 10 cricket bats to use to teach the game of cricket to her students.She visited Bradman's Cricket Manufacturing's factory and was shown several types of bats.She selected one of the models and asked Bradman's to send ten copies of that model to her house.When the bats arrived at Dawn's house, the company's representative asked her if she wanted to test them, but she said, "No, I'm in too much of a hurry right now." A week later, she found the time to inspect the bats and discovered that the handles were manufactured in a way that made them impossibly painful to use.The model that she chose at Bradman's factory had not suffered from the same defect.Dawn is entitled to reject the bats.
Price Taker
A market participant that accepts the prevailing market price and does not have the power to influence it.
Perfectly Competitive
A market structure characterized by a complete absence of rivalry among the individual firms.
Price Takers
Firms or individuals who accept the market price as given and have no influence to change it due to their small market share.
Market Price
The prevailing rate at which a service or asset is traded in the free market.
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