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Which statement is true for perfectly competitive frims? A. Short run profit are

ID: 1126484 • Letter: W

Question

Which statement is true for perfectly competitive frims?

A. Short run profit are always zero B. Each frim faces the industry (downward-sloping) demand curve. C. Each frim produces a distinct and differentiated product. D.firms accept the market price and can't change it.


Which statement is true for perfectly competitive frims?

A. Short run profit are always zero B. Each frim faces the industry (downward-sloping) demand curve. C. Each frim produces a distinct and differentiated product. D.firms accept the market price and can't change it.




A. Short run profit are always zero B. Each frim faces the industry (downward-sloping) demand curve. C. Each frim produces a distinct and differentiated product. D.firms accept the market price and can't change it.


A. Short run profit are always zero B. Each frim faces the industry (downward-sloping) demand curve. C. Each frim produces a distinct and differentiated product. D.firms accept the market price and can't change it.


Explanation / Answer

Answer
D.firms accept the market price and can't change it.
The perfect competition market has many firms and free entry and exit which makes it perfectly competitive where no one (seller or buyer ) influence the market price so the firms are price taker as per market equilibrium