Question

A firm in perfect competition is a price taker because​ _______.

Answer 1

Answer:

A firm is a price taker BECAUSE other firms can dive into the market with ease and manufacture a product that is not so different from every other firm's product. With this, it will not be easy for any firm to set their own prices.

Explanation: A trade that do not affect the price of a commodity if he or she buys or sells shares is called a PRICE TAKER.

Firms in perfectly competition market are price takers because as soon as the equilibrium price is set for a commodity, firms must accept.

Agriculture is an example of a perfect competition since each farmers have no control on the market price .

Also, financial assets like stocks and bonds is a good example too