A perfectly competitive firm has no control over the

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the price of the product is determined by the market and the firm has no control over it. The firm can only choose to produce or not to produce at that given price. The quantity of output produced is also determined by the market demand and supply, as the firm is a price taker. The inputs used by the firm are also determined by the market prices of inputs, and the type of good produced is determined by consumer demand in the market. Therefore, the only factor that the firm has no control over is the price of the product.

A Perfectly Competitive Firm Has No Control Over the