Asked by
AL-Hussein Alshamsi
on Oct 27, 2024
Verified
The assumptions of perfect competition imply that:
A) individuals in the market determine the market price.
B) firms in the market accept the market price as given.
C) there will be no new competition due to natural monopolies.
D) the price will be decreasing yearly.
Perfect Competition
A market structure with many buyers and sellers, where all firms sell identical products and no single buyer or seller can influence the market price.
Market Price
The current price at which a good or service can be bought or sold in a competitive marketplace.
- Acquire knowledge of the assumptions and requirements needed for perfect market conditions.
- Become aware of the role and consequences of serving as a price taker compared to a price maker in an environment of perfect competition.
Verified Answer
LD
Learning Objectives
- Acquire knowledge of the assumptions and requirements needed for perfect market conditions.
- Become aware of the role and consequences of serving as a price taker compared to a price maker in an environment of perfect competition.