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A Firm in a Perfectly Competitive Market Has No Control

Question 21

Multiple Choice

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 are barriers to entry into the industry
C) every firm's product is a perfect substitute for every other firm's product, and there are a very large number of firms in the industry
D) the market demand for products produced in perfectly competitive industries is perfectly elastic

Correct Answer:

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