Asked by
Brianna Brinkley
on Dec 08, 2024
Verified
A firm in a perfectly competitive market has no control over price because
A) the government imposes price ceilings on the products produced in perfectly competitive industries.
B) there is free entry and exit from the industry.
C) every firm's product is a perfect substitute for every other firm's product.
D) the market demand for products produced in perfectly competitive industries is perfectly elastic.
Perfectly Competitive Market
A market structure characterized by many buyers and sellers, free entry and exit from the market, homogeneous products, and perfect information where no single participant can influence the price.
Price Control
Government-imposed limits on the prices that can be charged for goods and services in the market, usually aimed at curbing inflation or protecting consumers.
- Understand the traits and consequences of perfect competition for both companies and sectors.
Verified Answer
ME
Learning Objectives
- Understand the traits and consequences of perfect competition for both companies and sectors.