In a perfectly competitive market, which of the following is the main factor that affects consumers' decisions on which firm to purchase a good from?

Question

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In a perfectly competitive market, all firms sell identical products and there are no barriers to market entry or exit. As a result, the only factor that differs between firms is price. Consumers will choose to purchase the product from the firm with the lowest price. Therefore, price is the main factor that affects consumers' decisions on which firm to purchase a good from in a perfectly competitive market.

In a Perfectly Competitive Market, Which of the Following Is