Question

In perfect competition, producers _____ the price determined by buying and selling decisions in the marketplace. take make

Answer 1

Answer: take

Explanation:

Perfect competition is known to be a type of market where buying and selling of homogeneous or similar products or goods take place without government intervention. It is characterized by competition among sellers and customers or buyers which are well informed about the market. Furthermore, this type of market has many sellers and buyers transacting business and they are free to enter and exit the market. Thus, producers are price takers.

Answer 2

In perfect competition, producers take the price determined by buying and selling decisions in the market. Because all firms in such an industry are small and have homogeneous products, each firm is a price taker.