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 ?
Analysts said, 'Metro's deposit funding cost is now comparable to UK high street banks but we remain unconvinced that this represents an enduring competitive advantage, as we expect challenger banks to ultimately be price-takers in the deposit 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.
3) While leading players in global affairs, such as the great powers, are usually "price-makers of the system," it is conversely assumed that adjusting to accommodate the actions of these price makers is the perennial role of the smaller states, "the price-takers in the system.
They're frequently price-takers on both ends, wielding little clout with their suppliers or customers.
The NFF is also keen to ensure that farmers as price-takers will not be proportionally worse off from an increase in the fuel excise, as all increases in costs throughout the supply chain will be felt at farm-gate.
Since Giesecke supposes that exporters are not price-takers in international markets, export volumes will need to be expanded at lower prices to fund such increased imports.
Producers are often simply price-takers, with prices often bearing no real relationship to what the consumer actually pays.
The up-down-up pattern is well-known to all price-makers and many price-takers - or, at least, the general shape of it is.
A final point of symmetry regarding price-takers is that just as the market-determined product price must at least equal the value of minimum average variable cost to insure an incentive for a loss-minimizing ppt to remain open, the market-determined wage must be no greater than the value of maximum average revenue product to insure the same for a loss-minimizing rpt; only if these conditions hold will the firm--ppt or rpt--be able to cover its total variable cost and thus be able to insure its loss (or negative total profit) is less by remaining open than shutting down.
An alternative to the conventional competitive model is one in which firms are price-takers in the product market but have some degree of market power in the labor market.
textile and apparel industries are price-takers, then a measure of import price should be sufficient to measure the effect of import competition on wages and employment.
If employers were simple price-takers, the employer variation would be entirely within the larger individual effects.