"A Perfectly Competitive Firm Is Called a Price Maker Because

question 77

Essay

"A perfectly competitive firm is called a price maker because all the firms together must make the market price." Is the previous statement correct or incorrect? Briefly explain your answer.

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Definitions:

Real Number Line

A line that graphically represents all real numbers, with points corresponding to the numbers' values.

Opposite

Referring to a number that, when added to the original number, results in zero, or a direction exactly 180 degrees away.

Simplest Form

An expression or fraction that has been simplified to the point that it cannot be made any simpler, often by removing common factors.

Add Fractions

The process of combining two fractions with a common denominator to form a single fraction.