CFA Practice Question

There are 923 practice questions for this topic.

CFA Practice Question

Price takers ______

A. alter market output to change price and maximize their profits.
B. cannot influence market price.
C. are able to sell a greater quantity if and only if they lower the price.
Correct Answer: B

The market determines the price for price takers. Price takers are able to sell whatever quantity they can produce without affecting the market price.

User Contributed Comments 2

User Comment
Nyoiks they have a perfectly elastic demand curve
Dabuya The price is determined by the aggregated demand and supply of all market participants.
You need to log in first to add your comment.