The conditions for a perfectly competitive market include which one of the following?
A)Firms behave as price takers.
B)Profits are zero in the short run.
C)New entrants cannot threaten the position of existing firms.
D)Firms can control prices.
E)Firms must employ the newest technologies as soon as they are developed.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers, meaning they accept the market price as given and cannot influence it.

The Conditions for a Perfectly Competitive Market Include Which One