Answer:
Does not have the ability to control the price of the product it sells
Explanation:
A price taker is a firm that doesn't have the ability to control the price of the product they sell.
Price taker exist in a perfectly competitive market where individual firms cannot dictate prices of goods and services.
A perfectly competitive market is characterised by
1) presence of large number of buyers and sellers.
2) There is free entry and exit.
3) Sellers sell homogenous product, that is, identical product.
4) Buyers have access to information.
In contrast to price taker, we also have price makers who have the ability to control the prices of product they sell.
I think so, but there may be some exceptions--if any.
Answer: over-borrowing.
Explanation:
credit cards function like this: you can "buy" a lot of things with it, including very very expensive things. this is because instead of really buying that product, you borrow money from the bank to buy it. you then have to pay it off in slower amounts of money over time until youve paid off the original cost of the product and more because the bank will most likely charge interest.
sounds great, right?
it is, until you cant afford to pay those smaller amounts of money. then, it starts to build up and if you still cant afford to pay the bank, they will begin to liquidize your physical assets (they take your stuff as payment, really anything, even your house can be taken.)
Answer: Positive, Normative
Explanation: Positive economics is based on facts and objects that can be verified. While, normative economics is based on value based judgement that are difficult to verify.
Making a prediction today about the world's population in twenty years <em>based on current growth trends</em> is an example of <em>positive economics</em>.
<em>Advising</em> the residents of a town to choose a toll road over a freeway extension due to a limited budget and high trucking usage is an example of <em>normative economics</em>.
