This Question. pt n Which of the following statements correctly describes a perf

Question

This Question. pt n Which of the following statements correctly describes a perfectly competitive market? 0 A. Buyers in a perfectly competitive market pay different prices according to their individual demand. O B. In a perfectly competitive market, individual sellers and buyers can influence the market price. C. D. Haggling and bargaining are commonly observed in a perfectly competitive market. All participants in a perfectly competitive market are price-takers. Click to select your answer t optimizing analysia is one of Home F4 FS F6 F7

Explanation / Answer

Ans: d) All the participants in the perfect competition are price takers.

The perfectly competitive firms are producing and selling the identical products so it makes them as the price takers. They have no control over the market price, if any firm tries to charge a higher price the customers will switch to other products. There is little chance of price reduction in the perfect competition because if they reduce the price they will incur a reduction in their profits.

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