Price takers

Firms in competitive industries have no control of the price of their product. If they raise the price above the market price then demand for their output will fall to zero. If they reduce price below the industry level then they can essentially sell any amount of the product. Commodity markets provide the purest examples of price takers. Think, for example, of how much control a gold miner has over the price at which it can sell its output. See also price seekers.