As a price taker, a perfectly competitive firm
A) can realize only economic profits but not economic losses
B) must increase its price if it desires to sell additional units of output
C) must decrease its price if it desires to sell additional units of output
D) must accept the price that is set by the market

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers, meaning they have no control over the market price and must accept the price determined by the overall market supply and demand.

As a Price Taker, a Perfectly Competitive Firm