A producer's price level decision is made by the market in:
A) a monopoly.
B) pure competition.
C) monopolistic competition.
D) an oligopoly.
E) None of these is a good answer.

Question

Quizplus · Accepted Answer

In pure competition, there are many buyers and sellers in the market, and no single producer has control over the market price. Therefore, the producer's price level decision is determined by the market forces of supply and demand.

A Producer's Price Level Decision Is Made by the Market