Question

Under perfect competition, sellers are:

1. Price makers
2. Price takers
3. Price discriminators
4. None of these

Options

• a, b and c

• only b

• only c

• a and c

Answer 1

only b

Explanation:

Under perfect competition, there are many sellers offering identical (homogeneous) products.

• No single seller can influence the market price because the price is determined entirely by market demand and supply.
• Therefore, each seller has to accept the prevailing market price; they are price takers, not price makers or price discriminators.