A price taker is a single entity engulfed in the extreme economics case of perfect competition. This entity cannot influence the price of the good they are providing. This is due to the constriction of perfect competition in which the consumers are informed of the prices and they produce only a portion of the total industry output. This is contrary to a firm participating in a monopoly, where they exercise raw market power. A price taker has no market power and is at the hands of the consumers' needs.

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