WAEC Economics 2017 Theory — Question 15

Question 15 of 23 from the West African Examinations Council (WAEC) Economics 2017 Theory paper, with the correct answer and a full explanation.

5(b) What does it mean for a firm to be a: (i) price taker; (ii) price maker?

Model answer

(i) To be a price taker means that the firm cannot determine prices of goods but the market determines it. (ii) To be a price maker means that the firm's decisions can determine prices of goods and does not take price from the market.

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