An individual firm in a competitive market
A)decides, given the market price, how much to produce and sell.
B)has no control over the price or the quantity it produces and sells.
C)takes the market-determined amount it should sell as given, and then, based on this amount, determines what price to charge.
D)decides what price to charge and how much to produce and sell.
E)has control over the price but not the quantity to produce and sell.

Question

Quizplus · Accepted Answer

In a competitive market, individual firms are price takers, meaning they accept the market price as given and then decide how much to produce and sell at that price. They do not have control over the price.

An Individual Firm in a Competitive Market