In a perfectly competitive market, which of the following is the main factor that affects consumers' decisions on which firm to purchase a good from?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, where there are many small firms selling identical products, the main factor that affects consumers' decisions on which firm to purchase from is price. Since all products are identical, consumers have no reason to prefer one firm over another based on quality, customer service, or reputation. The only difference between firms is the price at which they sell their products. Therefore, consumers will choose the firm that offers the lowest price.

In a Perfectly Competitive Market, Which of the Following Is