I have the following True/False question:
A single price-taking firm on the market is called a monopoly.
As far as I know, a monopoly is a price maker not a price taker. That being said if it is a single firm how in the world can it not be a monopoly?
In my opinion, the answer to this question is False.
Could anyone possibly explain to me if my way of thinking is correct? and if a monopolistic firm can be a price taker?
Thank you very much