A Perfectly Competitive Firm Has to Charge the Same Price

question 273

Multiple Choice

A perfectly competitive firm has to charge the same price as every other firm in the market.Therefore, the firm

• A)faces a perfectly inelastic demand curve.
• B)is not able to make a profit in the short run.
• C)is a price taker.
• D)faces a perfectly elastic supply curve.

---

Definitions:

Necessity

The condition or situation of being required or indispensable, often invoked in legal contexts where actions are taken out of an unavoidable need.

Contract

A legally binding agreement between two or more parties.

Warranty of Authority

An assurance provided by an agent to a third party that they have the authority to act on behalf of another person or entity in a legal or business transaction.

Breach

The violation or infringement of a law, duty, agreement, or trust.