Business, 24.03.2020 20:59 gilberta14

Why is a firm in perfect competition a price taker? A firm in perfect competition is a price taker because . A. it produces a tiny proportion of the total output of a particular good and buyers are well informed about the prices of other firms B. it is easier to take the price as given rather than calculate the profit-maximizing price C. charging a lower price than the market price is considered uncompetitive D. the market price is always the profit-maximizing price

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Answer from: jadenhoughton

B it's easier to take the price as given rather than calculate the profit maximizing price

Explanation:

Because if a firm in perfect competition attempt to charge a tiny amount above the market price sales will be hard and sometimes almost impossible

Answer from: jeremiahsingleton

Correct answer for why a firm in perfect competition is a price taker is option A. it produces a tiny proportion of the total output of a particular good and buyers are well informed about the prices of other firms

Explanation:

A price taker is a company that has no control to dictate prices for a good or service.

In the stock exchange market, a price taker is a trader who does not affect the price of the stock if he or she buys or sells shares.

A price taker is a business that sells such available products that it must accept the prevailing market price for its products. For example, a farmer produces wheat, which is a readily available. The farmer can only sell at the prevailing market price or lose.

All economic participants are considered to be price-takers in a market of perfect competition or one in which all companies sell an identical product, there are no barriers to entry or exit, every company has a relatively small market share, and all buyers have full information of the market.

Answer from: Quest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Answer from: Quest

answerindustrial revolution;

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