Question

If a seller is a price taker it means that the seller sells his product at the price Group of answer choices he chooses. determined in the market. determined by the biggest firm in the market. determined by the largest consumer in the market. none of the above

Answer 1

Answer:

Determined in the market

Explanation:

If the seller of the product is a price taker then the price of the product is determined by the market forces. Here, the market forces are demand and supply of the product. Equilibrium price is determined at a point where the demand curve of the product and supply curve of the product intersect each other. At this point, the quantity demanded is equal to the quantity supplied.