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Question

When a firm is a price taker it means they have no ability to set a price that they would like to charge. a price taker lacks market power.A. TrueB. False

Answer

"When a firm lacks market power and cannot set the price at which it sells its products, it is referred to as a price taker. As a teacher, I can confirm the accuracy of this statement. Being a price taker means that a company that operates within a perfectly competitive market must accept the equilibrium price at which it sells its products. Even a small increase in price above the market rate could result in a loss of sales for a perfectly competitive business. In a perfectly competitive market, there are numerous buyers and sellers of a homogenous good at a fixed price. Thus, if a company is unable to influence market conditions, it must accept the price determined by the basic laws of supply and demand. If you wish to learn more about perfectly competitive markets, you can refer to the following link: brainly.com/question/29407851 #SPJ4."