Of the following characteristics,which one applies only to a perfectly competitive firm?
A) It always earns a profit.
B) It seeks only to minimize cost.
C) It can sell all it wants to at the market price.
D) It will never earn a profit.
E) It has a narrow range of prices it can charge for its output.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers and can sell all they want to at the prevailing market price. This is not necessarily the case for firms in other market structures such as monopolies or oligopolies. The other options are not applicable to all perfectly competitive firms.

Of the Following Characteristics,which One Applies Only to a Perfectly