In a competitive equilibrium,workers are and firms are .
A) price setters,price setters
B) price setters,price takers
C) price takers,price takers
D) price takers,price setters
E) price neutral,price setters

Question

Quizplus · Accepted Answer

In a competitive equilibrium, both workers and firms are price takers. This means that neither party has the power to set prices in the market, but instead must accept the prevailing market price as determined by supply and demand. This is what creates a competitive market where all participants have equal opportunity to participate and benefit.

In a Competitive Equilibrium,workers Are and Firms Are