The only market where firms need not to be concerned about balancing the price effect and the output effect when making production decisions is a:
A)monopoly market
B)competitive markets
C)oligopoly market
D)duopoly market

Question

Quizplus · Accepted Answer

In competitive markets, firms are price takers and do not have the market power to influence the price of their product. Therefore, they do not need to balance the price effect and the output effect when making production decisions, unlike in monopoly, oligopoly, and duopoly markets where firms have some degree of market power and must consider the impact of their output decisions on market prices.

The Only Market Where Firms Need Not to Be Concerned