Firms in Perfect Competition Are Price Takers Because

question 236

Multiple Choice

Firms in perfect competition are price takers because

• A)one firm determines the price that all other firms in the industry will charge.
• B)consumers have enough market power to set prices.
• C)firms accept the price determined by the government.
• D)each firm is too small relative to the market to be able to influence price.

---

Definitions:

Metacognition

The awareness and understanding of one's own thought processes, encompassing the ability to monitor, assess, and adapt these processes.

Dualism

The belief or concept that reality or existence is divided into two fundamental parts, often referring to the mind-body distinction in philosophy.

Dualistic Thinking

A cognitive tendency to see situations and issues in black and white terms, without recognizing complexities or gray areas.

Beginning College

The initial stage of higher education where students adapt to college life and academic responsibilities.