price taker

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Price Taker

An investor who makes orders that are not large enough to affect the price. That is, when price takers make orders, they must accept the price offered by another investor. A price taker may be an individual or a (small) company. A price taker contrasts with a price maker, which makes orders of sufficient quantity to affect the market price.

price taker

a FIRM that sells its output at a fixed PRICE that is determined by market forces (as in PERFECT COMPETITION) or by government-imposed PRICE CONTROLS.
References in periodicals archive ?
However, despite being one of the biggest consumers in the world, India continues to be a price-taker in the global market.
Retail deposits remain the bank's main source of funding, making it particularly sensitive to the overall macro and interest rate environment, since the bank is a price-taker in the deposits market.
Since India is a price-taker in most cases, higher interest rates will not bring them down.
Now, the income that a price-taker obtains from his raw materials fluctuate in accordance with the dictates of the overseas factory owners who buy the product: sometimes, the prices are high, sometimes they are low, and sometimes they are very low.
Although it won't change the course of benchmark US crude prices overnight, the deal is the latest manifestation of China's desire to use its leverage as a top consumer of industrial resources to become a price-maker, not a passive price-taker.
Chris Dodds, of the Livestock Auctioneers Association, said: "In my opinion the live ring has been a price-setter rather than a price-taker over the last 12 months.
The best that can be said for the monopoly model is that it is better than the price-taker models because it considers a downward-sloping demand curve.
It is straightforward to connect the behavior of a product price-taker (ppt), a firm that is assumed powerless to affect the market-determined product price, and a resource price-taker (rpt), a firm that is assumed powerless to affect the market-determined resource price, or wage; whereas the former faces a horizontal product demand schedule, the latter confronts a horizontal resource (labor) supply schedule, both suggesting the absence of price-making ability.
In such a situation, the paper wealth of a price-taker is equal to real wealth.
Retail deposits continue to remain the bank's main source of funding, which makes it even more dependent on the overall macro and interest rate environment, since the bank is a price-taker in the deposits market.
He added: "We are encouraging the EU to take action to make sure farmers are not just price-takers but also a price-maker.