In a price-taker market, profits are

A) the result of consumers being charged arbitrarily high prices.
B) a reward for creating value.
C) the result of barriers to entry into the market.
D) a signal that fewer resources are needed in a market.

Price-Taker Market

A market condition where individual buyers or sellers have no power to influence the price of goods and services, typically due to high competition and standardized products.

Economic Profits

The difference between a firm's total revenues and its total opportunity costs.

Barriers to Entry

Economic, procedural, regulatory, or technological factors that obstruct or limit the possibility of new competitors entering an industry.