Thursday, March 19, 2015

Why a firm is a price taker and not a price maker under perfect market conditions?

Why a firm is a price taker and not a price maker under perfect market conditions?
the firm is too small and has too much cometition which offers thesame product. if it charged more than ist cost Price thecompetition would take the customer away. becoming a pricemakerneeds a local, innovational, governmental or resource basedmonopoly. that's not given under perfect marked condition.

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