Advertisements
Advertisements
Question
The firm under perfect competition is a ______.
Options
Price maker
Price taker
Price stabilizer
Price controller
Advertisements
Solution
The firm under perfect competition is a price taker.
Explanation:
The ideal competition there are so many buyers and sellers that a firm produces such a small portion of overall output that a change in output has no discernible influence on market supply and thus on commodity prices. A competitive corporation lacks market strength and hence cannot influence price. In perfect competition, a firm is thus a price taker.
APPEARS IN
RELATED QUESTIONS
The demand for rice by all the people in your area will be called as ______ demand.
Explain any five ways of exploitation of consumers in a market.
Mention any three features of an oligopoly market.
What are inferior goods?
A market is a mechanism through which ______ are exchanged.
What is a market?
Discuss the characteristics of a market.
Which of the following is an essential condition for the existence of a market?
In which type of definition of 'market' is the main focus on the place or area where buying and selling occur?
What does “unity of price” in a market mainly mean?
