I'm working on a practice problem where I'm giving the following:
Suppose a firm is a price-taker and can sell the good it produces at price $p$.
There is more to the problem, but it is not relevant for my question.
I am not given any more information about the market other than the firm is a price-taker. So it is therefore not a price-setter meaning the market is setting the price.
I can imagine two scenarios under which a firm would not be a price-setter.
(1) if there were perfect competition between sellers, the firm could not set a price.
(2) Also, if there were only one buyer, the firm would not be able to set a price either since the buyer could refuse to buy until the price went low enough.
Is there something that distinguishes price-taking due to competition between sellers from price-taking due to monopsony? How do I tell which one it is?