Asked by
Darrius Avery
on Dec 11, 2024Verified
Which of the following is a reason to study the decisions of price takers?
A) While there are not many price-taker markets, these few markets dominate the economy.
B) The decision making of both price searchers and price takers is identical.
C) The price-taker model enhances our knowledge of competition as a dynamic process.
D) Price takers are the most common type of business in the real world.
Price-Taker Markets
Markets in which individual buyers and sellers have no control over the prices at which they buy or sell goods, typically because the market is highly competitive and goods are standardized.
Dynamic Process
A system or sequence of actions characterized by continuous change, activity, or progress over time.
Decision Making
The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.
- Understand the evolving characteristics of competitive landscapes and their effects on options available to consumers and strategies employed by businesses.
Verified Answer
GB
Learning Objectives
- Understand the evolving characteristics of competitive landscapes and their effects on options available to consumers and strategies employed by businesses.