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In which market structure are firms price takers? A) Monopoly B) Oligopoly C)...

Nov 15, 2023

In which market structure are firms price takers? A) Monopoly B) Oligopoly C) Perfect competition D) Monopolistic competition

C

Key Concept

Price Takers in Market Structures

Explanation

In a market structure of perfect competition, firms are price takers because there are many firms, each selling an identical product, and no single firm has any influence over the market price. Buyers and sellers in a perfectly competitive market must accept the price the market determines.