The firm in a perfectly competitive industry
A) is a price-taker
B) is a price-maker
C) attempts to differentiate his/her product through advertising
D) will earn an economic profit in the long run
E) can charge any price it wishes

Question

Quizplus · Accepted Answer

In a perfectly competitive industry, firms are price-takers because there are many sellers offering a homogeneous product, and no single firm has any influence over the market price.

The Firm in a Perfectly Competitive Industry