pricetaker
A pricetaker is an entity, typically a firm in economics, that has no ability to influence the market price of a good or service. In a perfectly competitive market, individual firms are too small relative to the overall market size to affect the prevailing price. Therefore, they must accept the market price as given and make their production decisions based on that price.
The defining characteristic of a pricetaker is that if they attempt to charge a price higher than
Pracetakers operate under the assumption that their individual output is an insignificant portion of the total
The concept of a pricetaker is fundamental to understanding basic supply and demand dynamics and the behavior