What do you called a situation where a buyer or seller that is unable to affect the market price?

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1247707

2026-03-05 17:10

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A situation where a buyer or seller is unable to affect the market price is called a "price taker." In this scenario, individual participants accept the market price as given and can only decide how much to buy or sell at that price. This typically occurs in perfectly competitive markets, where many buyers and sellers exist, and no single entity has sufficient market power to influence prices.

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