Question

3. In perfect competition

a.) each firm is a price taker

b.) each firm sets its own price so that it is different from the prices of its competitors

c.) earning an economic profit for certain

d.) consumers band together to demand the lowest price possible

Answer 1

Perfect competitive market is a structure type where

There are large number of buyers and sellers in the market .

Price is decided by the market forces that is demand and supply in the market.

So each firm is a price taker not price maker

Supernormal profit is there in the short run .

so the correct answer here is option A