In which market type are firms considered "price takers" because they take the price in the market and have no control over setting a price? Monopoly Oligopoly Monopolistic Competition Perfect Competition

The correct answer is: "Perfect Competition"

Perfectly competitive markets represent the most extreme form of capitalism, where the firms are totally subject to the market forces. When there is perfect competition, it is assumed that the market is constituted by a large number of small firms, so that each of them represents an insignificant share of the total market supply and therefore each company, individually, has no power to influence the price of the product commercialized, and becomes a price-taker. A price-taker has no choice but to operate with the price set by the interaction of the market demand and supply curves.

Perfect Competition

Explanation:

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