A firm is a ______ when it can sell as much as it wants at some given price P,but nothing at any higher price.
A) Monopoly
B) Oligopoly
C) Price taker
D) Price setter

Question

Quizplus · Accepted Answer

This is the definition of a price taker. A price taker does not have any market power and must accept the market price, as it cannot affect the market price on its own. In this case, the firm can sell as much as it wants at a given market price, but cannot sell anything if it tries to raise the price.

A Firm Is a ______ When It Can Sell as Much