Microeconomics: Principles, Applications, and Tools (8th Edition)

by O'Sullivan, Arthur; Sheffrin, Steven; Perez, Stephen

Published by Prentice Hall

ISBN 10: 0-13294-886-9

ISBN 13: 978-0-13294-886-9

Chapter 9 - Perfect Competition - Exercises - 9.1 Preview of the Four Market Structures - Page 228: 1.4

Answer

price taker price maker

Work Step by Step

A price taker is one that has no control over price, such as a firm in perfect competition. A monopoly has total control over price and is therefore the price giver. Therefore a perfectly competitive firm is a price taker, while a monopolist is a price maker.

Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.