A Firm in a Perfectly Competitive Market Has No Control

question 79

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 are barriers to entry into the industry
• C) every firm's product is a perfect substitute for every other firm's product, and there are a very large number of firms in the industry
• D) the market demand for products produced in perfectly competitive industries is perfectly elastic

---

Definitions:

Energy

The capacity to do work; expressed in kilojoules or kilocalories.

Irreplaceable

Something that cannot be replaced or substituted because of its unique qualities or significance.

Free Energy Change

A measure in thermodynamics indicating the amount of energy in a system that is available for work during a chemical reaction.

Endergonic Reactions

Chemical reactions that absorb energy from their surroundings, typically requiring an input of energy to proceed.