In perfectly competitive markets, firms a)can sell all of their output at the market price. b)produce...
In perfectly competitive markets, firms
a)can sell all of their output at the market price.
b)produce differentiated products.
c)can influence the market price by altering their output level.
d)are large relative to the total market.
Homework Answers
Option A.
Perfectly competitive market is a market structure in which there are large number of small firms.
These firms are price takers and hence cannot influence the market price by altering their output level.
But as long as the firms sell their output at the market price, they can sell most of their output or all of them to their customers.
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