In a perfectly competitive industry, what influences the price?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, there are many small buyers and sellers who can freely enter or exit the industry. As a result, no single buyer or seller has the power to affect the market price. Instead, the price is determined by the intersection of the market demand and supply curves, which are influenced by various factors such as consumer preferences, production costs, technology, and market competition. Therefore, the correct answer is A) the forces of supply and demand.

In a Perfectly Competitive Industry, What Influences the Price