Which of the following is true under conditions of pure competition?
A)There are differentiated products.
B)The market demand curve is perfectly elastic.
C)No single firm can influence the market price by changing its production level.
D)Each individual firm has the ability to set its own price.

Question

Quizplus · Accepted Answer

Under conditions of pure competition, no single firm can influence the market price by changing its production level because there are many firms in the market producing identical products. This means that the actions of any one firm will have a negligible impact on the market price.

Which of the Following Is True Under Conditions of Pure