1. Characteristics of price-taker markets Firms in the market will be price-takers when the following conditions are met: 1. All firms in the market produce an identical product. 2. A large number of firms (buyers and sellers) exist in the market, so that no single firm dominates the market. 3. Each firm supplies only a very small portion of total output supplied to the market. 4. No barriers limit entry into or exit from the market, and firms and resources are fully mobile.