Say true or false
Firm that have market power are often described as price takers
False. Firms that have market power are often described as price makers, not price takers.
False.
Firms that have market power are often described as price makers, not price takers. A price taker is a firm that has no control over the market price and must accept the prevailing price determined by the market. In contrast, a firm with market power has the ability to influence or set the price in the market.