An economic entity that is too small relative to a market to affect its price, and that therefore must take that price as given in making its own decisions. Applies to all buyers in sellers in markets that are perfectly competitive. Applies also to a country if it is a small open economy.
Firms whose output does not influence price. Particularly apparent in perfectly competitive markets.
A company or individual whose selling or buying of goods and services has little or no influence over prices
A price-taker indicates a firm that produces a homogenous product of which there are many substitute goods in the industry and cannot charge a price higher than the market price.