Asked by
Danielle Reber
on Oct 27, 2024
Verified
A perfectly competitive firm is a:
A) price taker.
B) price searcher.
C) cost maximizer.
D) quantity taker.
Price Taker
A market participant that accepts the prevailing prices in the market, unable to influence prices through their own actions.
Perfectly Competitive
A market structure characterized by a large number of buyers and sellers, homogeneous products, free entry and exit, and perfect information, leading to zero economic profit in the long run.
- Understand the positions and implications associated with being a price taker as opposed to being a price maker in the setting of perfect competition.
Verified Answer
SA
Learning Objectives
- Understand the positions and implications associated with being a price taker as opposed to being a price maker in the setting of perfect competition.