[amp_mcq option1=”Price maker” option2=”Price breaker” option3=”Price taker” option4=”Price shaker” correct=”option3″]<\/p>\n
The correct answer is: C. Price taker.<\/p>\n
A firm under perfect competition is a price taker because it has no control over the price of its product. The price of the product is determined by the market forces of supply and demand. The firm can only choose how much to produce, given the market price.<\/p>\n
A price maker is a firm that has some control over the price of its product. The firm can set its own price, but it must take into account the prices of its competitors and the demand for its product.<\/p>\n
A price breaker is a firm that sets its prices below the market price in order to gain market share. This can be a risky strategy, as it can lead to losses if the firm is not able to generate enough revenue to cover its costs.<\/p>\n
A price shaker is a firm that has a significant impact on the market price of its product. The firm’s actions can cause the market price to rise or fall.<\/p>\n","protected":false},"excerpt":{"rendered":"
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