To sell an extra unit of output,a perfect competitor __________,while an imperfect competitor __________.
A) does not alter price;must lower price
B) must hope the market price falls;must lower price
C) does not alter price;does not alter price either
D) must lower price;must lower price
E) must lower price;must offer discounts

Question

Quizplus · Accepted Answer

A perfect competitor is a price taker and cannot influence market price. Therefore, to sell an extra unit of output, they will not alter the price. However, an imperfect competitor has some control over the market and needs to lower the price to be able to sell an extra unit of output.

To Sell an Extra Unit of Output,a Perfect Competitor __________,While