Companies that sell products whose prices are set by market forces are called
A) price givers.
B) price leaders.
C) price takers.
D) price setters.

Question

Quizplus · Accepted Answer

Companies that sell products whose prices are set by market forces are called price takers. These companies do not have the power to set prices because their products are homogeneous, meaning they are virtually identical to those offered by their competitors. As a result, they must accept the prevailing market price for their products.

Companies That Sell Products Whose Prices Are Set by Market