In a competitive industry each buyer and seller ?
Correct answer: A. is a price taker
- A. is a price taker
- B. Producer different products
- C. Believes that can influence price
- D. Prevents the entry of competitors
Explanation
No individual buyer or seller is large enough to influence the market price in a competitive industry, so each accepts the prevailing price. This makes both sides price takers.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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