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

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Definitions:

Personal Power

The influence or authority a person has over others, derived from their skills, qualities, or personal attributes, rather than their formal position.

Organizational Sources

The origins from which organizations draw their power, authority, resources, and information, crucial for their operation and success.

Expert Power

A form of power derived from possessing knowledge, skills, or expertise that others value, which can influence or control their behavior.

Referent Power

Influence based on identification with, admiration of, or respect for the power-holder.