Question

An economist would most likely define a PRICE TAKER as a business that



Group of answer choices

accepts the market price, and decides how much to produce

rejects the market price, and attempts to increase overall demand

pushes the market price downward, but experiences great losses as a result

allows market prices to fluctuate, but produces the same amount at each price

Answer 1

An economist would most likely define a PRICE TAKER as a business that

**accepts the market price, and decides how much to produce.**

This is because price takers operate in perfectly competitive markets where they have no control over the market price and must accept it as given. Their decision is primarily about how much to produce at that given price.