In a Perfectly Competitive Market the Term "Price Taker" Applies

question 226

Multiple Choice

In a perfectly competitive market the term "price taker" applies to

• A) sellers and buyers.
• B) firms but not buyers.
• C) buyers but not sellers.
• D) only the smallest sellers and buyers.

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Definitions:

Diagram

A visual representation of information, data, or a process, using symbols, lines, or illustrations.

Producer Surplus

The difference between the actual amount producers receive for a good or service and the minimum amount they are willing to accept.

Equilibrium Price

The price at which the quantity of a product demanded by consumers equals the quantity supplied by producers.

Diagram

A simplified drawing showing the appearance, structure, or workings of something.