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:

Net Operating Income

A company's income after operating expenses are subtracted but before interest and taxes are deducted.

Percentage Change

A mathematical calculation that represents the degree of change over time, usually expressed as a percent.

Target Profit

The desired profit a company aims to achieve for a particular product or service over a certain period.

Dollar Sales

The total revenue generated from goods or services sold, measured in dollar value.