Principles of Microeconomics / Unit 7 MIC 0601 short lesson, about 20 seconds
The Price Taker
Captions available
The idea
A perfectly competitive firm is a price taker: it can sell any amount at the market price and nothing above it, so it never sets a price at all.
In practice
One wheat farmer among thousands takes the bushel price as the weather.
Where people slip
A price taker still chooses one thing, its quantity, and that choice is the whole of this unit.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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