JAMB Economics 1999 Question 19

Question 19

Market Structures

In perfect competition, every firm is a price

  1. A.maker
  2. B.taker
  3. C.giver
  4. D.bidder.
Show the answer and explanation

Answer: B (taker)

Explanation

Each firm is too small to affect the market price, so it must accept (take) the price set by the industry.