Firms in a competitive market are said to be price takers because there are many sellers in the market, and the goods offered by the firms are very similar if not identical.

Question

Quizplus · Accepted Answer

In a competitive market, the presence of many sellers offering similar or identical products means that no single firm can influence the market price; they must accept the market price as given, hence they are called price takers.

Firms in a Competitive Market Are Said to Be Price