Price takers have no influence over market prices because there area.Both A and B are correct.b.numerous buyers.c.numerous sellers.d.distinctive products.
Question
Price takers have no influence over market prices because there are:
a. Both A and B are correct.
b. numerous buyers.
c. numerous sellers.
d. distinctive products.
Solution
The correct answer is a. Both A and B are correct.
Price takers are individuals or companies who must accept the prevailing prices in the market because the volume of goods they buy or sell is too small to affect the market price. They have no influence over market prices because there are numerous buyers and sellers in the market. This means that the actions of any single buyer or seller will not significantly impact the overall market price. Therefore, both options B (numerous buyers) and C (numerous sellers) are correct.
Option D (distinctive products) is not correct because price takers typically deal with standardized or undifferentiated products. If a product was distinctive, it would imply that the seller has some control over its price, which contradicts the definition of a price taker.
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