When firms are said to be price takers, it implies that if a firm raises its price,

a. firms in the industry will exercise market power.
b. competitors will also raise their prices.
c. buyers will pay the higher price in the short run.
d. buyers will go elsewhere.

The correct answer is option d.

Explanation:

The firms in a perfectly competitive market are price takers. The price taker firms do not determine their product prices. The price of  a product is determined through the market forces by the equalisation of demand and supply.

The firms face a horizontal line demand curve at the level of market price.

There are large number of sellers selling identical products in the market, so if a firm increases its price, the buyers will go somewhere else where the price is lower.

in terms of experimental research, mcdonald’s charging different prices in the two cities relates to