A Firm in a Perfectly Competitive Market Has No Control

question 310

Multiple Choice

A firm in a perfectly competitive market has no control over price because

• A) the government imposes price ceilings on the products produced in perfectly competitive industries.
• B) there is free entry and exit from the industry.
• C) every firm's product is a perfect substitute for every other firm's product.
• D) the market demand for products produced in perfectly competitive industries is perfectly elastic.

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Definitions:

Overthrow

The act of removing an established government or leader from power, often through forceful or illegal means.

Decolonization

The process by which colonies become independent from the colonial powers that control them. This often involves the re-establishment of the indigenous governance and cultural systems that were suppressed by colonial rule.

American Industry

The sector of the U.S. economy concerned with manufacturing and production, historically significant in the country's development and global economic status.