Which of the following statements is true?
A)A firm in a market with perfect competition is a price taker and must accept the market equilibrium price.
B)A firm in a market with perfect competition is a price maker and can influence the price of the product with their supply of the product.
C)A firm in a market with perfect competition can coordinate with other producers to determine a market price.
D)A firm in a market with perfect competition has considerable freedom in determining market price.

Question

Quizplus · Accepted Answer

In a market with perfect competition, there are many buyers and sellers with homogeneous products, thus no individual firm can influence the market price. As a result, each firm is a price taker and must accept the market equilibrium price.

Which of the Following Statements Is True