If a firm operates in a perfectly competitive market,then it will most likely

Question

Quizplus · Accepted Answer

In a perfectly competitive market, there are numerous small firms that sell identical or homogenous products. Therefore, each individual firm has no control over the market price and has to accept the price set by market forces of demand and supply. Thus, taking the price of its product as determined by the market is the most likely option for a firm operating in a perfectly competitive market.

Option A is unlikely as firms in a perfectly competitive market do not differentiate their products as they are identical to that of other firms in the market.

Option C is unlikely as market information is freely available and accessible to all firms in a perfectly competitive market, allowing them to make informed decisions.

Option D is unlikely as there are no barriers to entry in a perfectly competitive market, allowing new firms to enter and exit the market with ease.

If a Firm Operates in a Perfectly Competitive Market,then It