Why firm is a price taker and not a price maker? Explain .
Dear student
A firm is a price taker because it is the price which is determined by the ‘invisible hands of market’, i.e. by demand for and supply of the commodities. In other words, firms have no control over the existing market price and cannot influence it.
Regards
A firm is a price taker because it is the price which is determined by the ‘invisible hands of market’, i.e. by demand for and supply of the commodities. In other words, firms have no control over the existing market price and cannot influence it.
Regards