In a perfectly competitive market,all of the following are true EXCEPT:
A) firms take prices as given.
B) firms produce the quantity for which marginal cost equals price.
C) firms can increase profits by charging a price higher than the market price.
D) buyers take prices as given.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms cannot increase profits by charging a price higher than the market price, because they are price takers and cannot influence the market price.

In a Perfectly Competitive Market,all of the Following Are True