When a firm is buying an input in a perfectly competitive market, it accepts:
A) that the input price is given.
B) that the input price equals the input's marginal cost.
C) that the supply curve of the input to the firm is horizontal.
D) all of the above
E) a and b

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms accept that the input price is given and cannot be influenced by a single firm (A), that the input price equals the input's marginal cost (B), and that the supply curve of the input to the firm is horizontal, indicating a constant price regardless of quantity (C). Therefore, all of the statements are correct.

When a Firm Is Buying an Input in a Perfectly