If a Perfectly Competitive Market Involves Many Firms Selling Identical

question 30

Multiple Choice

If a perfectly competitive market involves many firms selling identical products, then, in the face of such competition,

• A) each of these firms must act as a price-maker.
• B) each of these firms must act as a price-taker.
• C) collusion amongst them will most often result.
• D) demand curves can become kinked in appearance.

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