Firms in perfectly competitive markets take the ______ as given when deciding how much to sell.

Question

Quizplus · Accepted Answer

In perfectly competitive markets, firms do not have any control over the market price and they have to accept the prevailing market price as given. Therefore, option C is correct, as firms take market prices as given when deciding how much to sell. Option A is incorrect as firms do not have any control over the market quantity. Option B is also incorrect, as firms cannot always sell at the lowest price due to competition, and they have to sell at the prevailing market price. Option D is also incorrect, as firms may have some control over input prices, but they do not have any control over the market price.

Firms in Perfectly Competitive Markets Take the ______ as Given