Price is constant to the individual firm selling in a purely competitive market because:
A) the firm's demand curve is downsloping.
B) of product differentiation reinforced by extensive advertising.
C) each seller supplies a negligible fraction of total supply.
D) there are no good substitutes for its product.

Question

Quizplus · Accepted Answer

In a purely competitive market, each seller supplies a negligible fraction of total supply, meaning that the individual firm has no control over the market price. The price is determined by the market forces of supply and demand, and any attempt by a single firm to raise prices would result in losing customers to competitors who offer the same product at a lower price. Therefore, price is constant to the individual firm selling in a purely competitive market.

Price Is Constant to the Individual Firm Selling in a Purely