Suppose that the market in which bakeries compete is a perfectly competitive market. Which one of the following reasons does not explain why it is difficult for a bakery to make an economic profit in the long run?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, no individual firm has the power to set the market price. Instead, all firms are price takers and must accept the prevailing market price. Option B is incorrect, as bakeries cannot set the market price in a perfectly competitive market. The other options are correct reasons why it is difficult for a bakery to make an economic profit in the long run.

Suppose That the Market in Which Bakeries Compete Is a Perfectly