Perfectly competitive firms respond to changing market conditions by varying their:

Question

Perfectly competitive firms respond to changing market conditions by varying their:​

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers and cannot independently set the price. The only way firms can respond to changing market conditions is by adjusting their output levels. When demand increases, the firms increase their output and when it decreases, they decrease their output to maintain equilibrium with the market price.

Perfectly Competitive Firms Respond to Changing Market Conditions by Varying