In competitive price-taker markets, firms
A) can sell all of their output at the market price.
B) produce differentiated products.
C) can influence the market price by altering their output level.
D) are large relative to the total market.

Question

Quizplus · Accepted Answer

In competitive price-taker markets, firms are price takers, meaning they can sell all of their output at the market price but cannot influence the market price by altering their output level.

In Competitive Price-Taker Markets, Firms