theme 3 profits

Question 1

define a price taker firm

Answer 1

this is a firm that has no influence on the market price and must sell all of its out puts at the going market price

Question 2

give examples of price taker markets

Answer 2

farmers

grain markets

Question 3

define a price maker firm

Answer 3

this is a firm that is able to choose the price it sells at. generally they sell at lower prices to gain the most market share

Question 4

what is a monopoly

Answer 4

this is when one company dominates a market and can set prices freely.

Question 5

what is an oligopoly

Answer 5

this is a market with limited competition