A firm is a ______ when it can sell as much as it wants at some...

A firm is a ______ when it can sell as much as it wants at some given price P, but nothing at any higher price.

monopoly

oligopoly

price taker

price setter

Solutions

Expert Solution

A firm is a PRICE TAKER when it can sell as much as it wants at some given price P, but nothing at any higher price.

Explanation: It is a case of perfectly competitive market. A perfectly competitive firm is a price taker, which means that it must accept the equilibrium price at which it sells goods. If a perfectly competitive firm attempts to charge even a tiny amount more than the market price, it will be unable to make any sales.

Rahul Sunny answered 2 years ago

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