One prolonged blast from the horn of a vessel serves as a warning to other ships that an unseen vessel is in the water. Any vessels within earshot of the prolonged horn blast should reply with a prolonged blast of their own.
A firm is likely to be a price taker whenâ¦.. it sells a product that is exactly the same as every other firm. It represents a small fraction of the total market. Consumers are usually price takers when they buy most goods and services because ____, while relatively few firms are price takers because ____.
A monopolist can take market demand as its own demand curve. The firm is a price maker but it cannot charge a price that the consumers will not bear. A monopolist has market power which is the power to raise price above marginal cost without fear of losing supernormal profits to new entrants to a market. In this sense, price elasticity of demand acts as a constraint on the pricing-power of the monopolist.