Which of the Following Is True of Perfectly Competitive Firms

question 134

Multiple Choice

Which of the following is true of perfectly competitive firms?

• A) It is difficult for entrepreneurs to become suppliers of a product in a perfectly competitive market structure.
• B) A perfectly competitive firm has a perfectly elastic supply curve.
• C) In a perfectly competitive market, an individual seller can change his price and it will not alter the output he sells.
• D) None of the above are true.

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Definitions:

Horizontal Segment

A portion or segment of the market where businesses offer products or services that are similar and target the same consumer group, often within the same industry sector.

Keynesian Theory

An economic theory stating that government intervention through fiscal policy is necessary to manage aggregate demand and address unemployment and recession.

Say's Law

An economic theory stating that supply creates its own demand, suggesting that producing goods and services generates the means and the willingness to purchase other goods.

Demand-Oriented

Demand-Oriented is an approach or policy focused on increasing consumer demand to stimulate production and economic growth.