A perfectly competitive firm has control over:
A) the number of firms in the market.
B) market conditions.
C) the price at which to sell.
D) the quantity of output to produce.

Question

Quizplus · Accepted Answer

A perfectly competitive firm is a price taker and cannot control the price in the market. It can only control the quantity of output it produces. The number of firms in the market and market conditions are determined by external factors and are beyond the control of any single firm in a perfectly competitive market.

A Perfectly Competitive Firm Has Control Over