(a) An oligopoly market-Price maker. Justification: An oligopoly is a market structure dominated by the small number of large firms and several of these firms are large enough to influence the market price, hence they are Price Maker.
(b) A perfectly competitive market-Price taker. Justification: Every firm in perfect competition is very small compared to the overall size of the market. Only those firms which can cover their cost can survive. The market price will allow only for normal profits, which means that the individual firms cannot lower its prices to attract the customers. The individual firms also cannot raise their prices, because it will lose its customers to the competition. With each firm selling identical products, there is no customer loyalty. The customers will migrate to firms with lower price. Hence, all the firms in a perfectly competitive market are a price taker.
