Perfectly competitive firms
A) sell homogeneous products.
B) are price takers.
C) are small relative to the size of the market.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms sell homogeneous (identical) products, are price takers (they cannot influence the market price and must accept the market price), and are small relative to the size of the market, meaning their output decisions do not affect market conditions.

Perfectly Competitive Firms