Perfectly Competitive Firms Cannot Individually Affect Market Price Because

question 94

Multiple Choice

Perfectly competitive firms cannot individually affect market price because

• A)There is an infinite demand for their goods.
• B)Demand is perfectly inelastic for their goods.
• C)There are many firms,none of which has a significant share of total output.
• D)The government exercises control over the market power of competitive firms.

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Definitions:

Lifetime Warranty

A guarantee provided by a manufacturer or seller that a product will be repaired or replaced for free for the duration of the product's life.

Consumer Orientation

Business philosophy that focuses first on determining unmet consumer wants and needs and then designing products to satisfy those needs.

Work Ethics

A set of values based on discipline and hard work, guiding how individuals perform their job duties and responsibilities.

Capital Expenditure

Capital expenditure, or CapEx, involves funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.