If a perfectly competitive firm faces a market price of $3 per unit,and it decides to produce 30,000 units,the market price will likely:

Name: If a perfectly competitive firm faces a market price of $3 per unit,and it decides to produce 30,000 units,the market price will likely:
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Question

Quizplus · Accepted Answer

In a perfectly competitive market, individual firms have no control over the market price. Therefore, if the firm decides to produce 30,000 units, it will not affect the market price, which will remain the same at $3 per unit.

If a Perfectly Competitive Firm Faces a Market Price of $3