The only decision for a manager to make with perfect competition is how much to produce.

Question

Quizplus · Accepted Answer

In perfect competition, all firms are price takers and have no control over the market price. Therefore, the only decision a manager can make is how much to produce in order to maximize profits at the given market price. The price is determined by the demand and supply of the market, and the firm has no influence over it.

The Only Decision for a Manager to Make with Perfect