In the Model of Perfect Competition

question 26

Multiple Choice

In the model of perfect competition:

• A) the market forces of supply determine the price.
• B) individual firms can influence the price, but only slightly.
• C) no individual or firm has enough power to have any impact on price.
• D) the market forces of demand determine the price.

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Definitions:

Perceive

To perceive means to become aware or conscious of something through the senses, or to interpret in a certain way.

Reputation Risks

The potential loss or negative impact on an organization's reputation due to its actions, decisions, or events that are perceived negatively by the public or stakeholders.

Bounded Rationality

A concept suggesting that individuals make decisions based on the limited information available to them and their mental capacity to process that information.

Acceptable Resolution

A solution or outcome that is satisfactory or agreeable to all parties involved in a conflict or dispute.