Price takers and Price Makers Flashcards
1
Q
Where do Price takers operate?
A
In highly (Perfectly competitive) markets
2
Q
Why do price takers have to accept the market price?
A
They have no pricing power and have to accept the market price in order to do as well as possible
3
Q
What type of demand curve do Price takers have?
A
They have a perfectly elastic demand curve
4
Q
What market share do price takers have?
A
A low percentage market share
5
Q
How is a Price Takers curve represented?
A
It is an upwards sloping line
