In the long run it is not possible for a perfectly competitive firm to
A) alter its plant size.
B) set the product price.
C) adjust its output.
D) replace its antiquated equipment.
E) adopt new technology.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the price of the product is determined by the market forces of supply and demand. The individual firm has no control over the price and must accept the market price. Therefore, it is not possible for a perfectly competitive firm to set the product price.

In the Long Run It Is Not Possible for a Perfectly