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When is a Firm Called ‘Price-taker’? - Economics

Question

When is a firm called ‘price-taker’?

Solution

A firm is said to be a price taker when it has no control over the existing market price and accepts the price as determined by the invisible hands of market, i.e. by demand for and supply of the commodities.

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When is a Firm Called ‘Price-taker’? Concept: Price Ceiling.
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