A firm in a perfectly competitive industry is a

Question

Quizplus · Accepted Answer

A firm in a perfectly competitive industry cannot influence the market price of the product it sells, so it must accept the prevailing market price as given and adjust its production quantity accordingly. Thus, the correct choice is "price taker" (A). "Quantity taker" (B) and "quality maker" (C) are not relevant or accurate descriptions of a firm in a perfectly competitive industry. "Price maker" (D) would only apply to a firm with market power, which is not the case in a perfectly competitive industry.

A Firm in a Perfectly Competitive Industry Is a