Ask Question
BusinessBusiness
22 June, 15:13

The term price taker can apply to buyers as well as sellers. A price-taking buyer cannot influence prices by changing the amount purchased.

Are you a price taker for the goods you buy?

Can you give an example of a firm that might not be a price taker in the market in which it buys one or more of its inputs?

+5
Answers (1)
  1. 22 June, 18:22
    0
    'Price taking' buyers : comprise an insignificant part of the market demand. I might or might not be a price taker, depending on nature of my demand. Monopsony is not a price taker.

    Explanation:

    A seller or buyer being 'Price Taker' implies : they contribute insignificantly to market supply or market demand, & hence their supply or demand change won't alter the market prices. Eg Perfect Competition.

    I might or might not be a price taker, depending on nature of my demand. If I am a buyer amidst many other buyers, I would be a price taker. If I am one of the few buyers of a commodity, I might be able to influence price by my demand.

    Monopsony is a market situation with single buyer. The buyer can be of certain inputs, labour services. These single buyers have all control on price determination, are not Price Takers - rather Price Makers. Eg : Company Coal town, coal company sole employer of coal labour.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The term price taker can apply to buyers as well as sellers. A price-taking buyer cannot influence prices by changing the amount purchased. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Without Data Corporation's consent, Elias hacks into the firm's computers and downloads trade secrets and other confidential information. Most likely, Elias is liable for the tort of a. battery. b. appropriation. c. conversion. d. trespass to land.
Answers (2)
Which transaction would cause one asset to increase and another asset to decrease? a. the owner invested cash in the business. b. the business paid a creditor. c. the business incurred an expense on credit. d. the business bought supplies for cash
Answers (1)
An investment project provides cash inflows of $745 per year for eight years. What is the project payback period if the initial cost is $1,700? What if the initial cost is $3,300? What if it is $6,100? Ross, Stephen, Ross, Stephen.
Answers (1)
Under what circumstances (if any) should non-government organizations, international organizations, and donors be willing to pay higher prices for products manufactured in limited resource settings
Answers (1)
A contract for a sale of land from Beachfront Properties Inc. to City Development Corporation contains an erroneous legal description. The appropriate remedy for these parties is most likely a. damages. b. specific performance. c. reformation. d.
Answers (1)
New Questions in Business
Joseph is reviewing secondary data his company collected about seasonal variations in consumer spending because he is thinking about developing a new product line. The advantages of using these data include
Answers (1)
When managers use a management information system, no management action is needed if a activities are performed as planned and standards are met b all employee performance reviews are completed on schedule c there are no changes in the organization
Answers (2)
Macy Corporation's relevant range of activity is 8,100 units to 16,500 units. When it produces and sells 12,300 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.50 Direct labor $ 3.
Answers (1)
In which part of the world will one find over 50 percent of the population described as unaffiliated with the remainder of the population either buddhist or affiliated with a folk religion?
Answers (1)
Criteria for selecting a social network often includes an analysis of the characteristics of the site visitors.
Answers (1)
Home » Business » The term price taker can apply to buyers as well as sellers. A price-taking buyer cannot influence prices by changing the amount purchased.
Sign Up Forgot Password?