How Do You Spell PRICE TAKER?

Pronunciation: [pɹˈa͡ɪs tˈe͡ɪkə] (IPA)

Price taker is a term used in economics, referring to a business or individual who accepts the market price for a good or service, without the ability to influence it. The word "price" is spelled /praɪs/, with the long "i" sound in the first syllable, and the "s" at the end pronounced as a voiceless consonant. "Taker" is spelled /teɪkər/, with the first syllable pronounced as a long "a" sound, and the "er" at the end pronounced as a schwa sound. Together, the phonetic transcription for "price taker" is /praɪs teɪkər/.

PRICE TAKER Meaning and Definition

1. A price taker refers to an entity, whether an individual or a firm, that has no control or influence over the market price of a particular good or service. Instead, they are subject to accepting the prevailing price determined by the market forces of supply and demand. As a result, price takers have minimal to no market power and are considered passive participants in the market.

   In competitive markets, price takers are often characterized by the absence of barriers to entry or exit and a large number of buyers and sellers. They operate within an environment where no individual participant has the ability to affect prices due to the vast supply and demand forces at play. Consequently, price takers must accept the prevailing price as set by the equilibrium point between supply and demand.

   For a price taker, the acceptance of the market price is a fundamental aspect of their decision-making process. They adjust their quantity of production or consumption based on the market price rather than attempting to manipulate or shape it. Since price takers have no control over price determination, their efforts focus on minimizing costs or maximizing utility within the given market conditions.

   In summary, a price taker is a participant in a competitive market who passively accepts the market price due to the absence of individual influence. Their actions primarily revolve around adjusting quantity rather than price in response to market conditions.

Common Misspellings for PRICE TAKER

• orice taker
• lrice taker
• -rice taker
• 0rice taker
• peice taker
• pdice taker
• pfice taker
• ptice taker
• p5ice taker
• p4ice taker
• pruce taker
• prjce taker
• prkce taker
• proce taker
• pr9ce taker
• pr8ce taker
• prixe taker
• prive taker
• prife taker
• pride taker

Etymology of PRICE TAKER

The word "price taker" consists of two parts: "price" and "taker".

The term "price" comes from the Old French word "pris", which means "value" or "price". It can be traced back to the Latin word "pretium", meaning "price" or "worth".

The second part, "taker", derives from the verb "take", which originates from the Old English word "tæcan" and is related to the Dutch word "nemen" and the German word "nehmen". Ultimately, it can be traced back to the Proto-Germanic word "tēkaną", meaning "to grasp" or "to seize".

When combined, "price taker" refers to a market participant or business entity that has no influence or control over the price of a particular product or service.