A Firm in a Perfectly Competitive Market Has No Control

question 310

Multiple Choice

A firm in a perfectly competitive market has no control over price because

• A) the government imposes price ceilings on the products produced in perfectly competitive industries.
• B) there is free entry and exit from the industry.
• C) every firm's product is a perfect substitute for every other firm's product.
• D) the market demand for products produced in perfectly competitive industries is perfectly elastic.

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Definitions:

Stable

Characterized by consistency, steadiness, and lack of significant change or fluctuation.

Global

Pertaining to or involving the entire world, emphasizing a comprehensive, worldwide scope or application.

Body Mass Index

A measure of body fat based on an individual's weight in relation to their height.

High Calorie

Referring to food or diet that contains a large amount of calories per serving, often associated with contributing to weight gain if consumed in excess.