Which of the following statements is true for both Microsoft and a locally owned restaurant?
A)Both are perfect competitors.
B)Both confront perfectly elastic demand for their products.
C)Neither firm is able to influence the price of their products.
D)Both seek to maximize profits.

Question

Quizplus · Accepted Answer

All firms seek to maximize profits. Only perfectly competitive firms face perfectly elastic demand and are unable to influence price. Microsoft is an example of an imperfectly competitive firm.

Which of the Following Statements Is True for Both Microsoft