wiz-icon
MyQuestionIcon
MyQuestionIcon
3264
You visited us 3264 times! Enjoying our articles? Unlock Full Access!
Question

Under perfect competition, the price is determined by the industry. At this price a firm can sell any quantity. The AR curve is perfectly elastic. Under monopoly, firms can sell more only at a lower price. So, AR is negatively sloped.
Which form of market is known as a price taker?

[1 mark]

A
Perfect competition
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
Monopoly
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Monopolistic competition
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
Oligopoly
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is A Perfect competition
Since the producers in the perfect competition take the prices from the market, they are termed as price takers

flag
Suggest Corrections
thumbs-up
3
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Building the Supply Curve
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon