Ask Question
BusinessBusiness
4 May, 08:42

A perfectly competitive firm is a: Group of answer choices price taker, because it must accept the market equilibrium price. price participant, because it can coordinate its pricing decisions with other firms. price maker, because it has the freedom to set the selling price. price leader; it can change its price and other firms will adjust.

+4
Answers (1)
  1. 4 May, 11:23
    0
    A. price taker, because it must accept the market equilibrium price.

    Explanation:

    A perfectly competitive firm is an ideal firm in which different firms sell products that are homogeneous or similar in nature. They are price takers because the prices of goods are determined by changes in demand and supply, therefore they must accept the market equilibrium price. They do not attempt to fix the prices of commodities. The opposite of this type of firm is a monopoly where a firm has complete control of a market, having the ability to change prices as it wills.

    An example can be found among businesses that sell similar kinds of products. It could be in the form of grocery stores that sell similar wares. When any of the sellers leave the market, it does not affect the other sellers as their prices are at equilibrium. Therefore, anyone can enter or exit this type of market.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A perfectly competitive firm is a: Group of answer choices price taker, because it must accept the market equilibrium price. price ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
An unfavorable flexible budget variance for variable expenses would indicate that: Group of answer choices the expenses of the company were less than what they had planned.
Answers (1)
With regard to a futures contract, the long position is held by a. the trader who plans to hold the contract open for the lengthiest time period. b. the trader who commits to delivering the commodity on the delivery date. c.
Answers (1)
A major factor contributing to the slow growth rate of less developed economies is
Answers (1)
The real estate agent told the prospective home buyers, "You seem to really like that last house we looked at, so I better let you know that one of the other agents in our office is scheduled to bring another couple out to take a second look at it
Answers (1)
The Laurel Corporation starts the year with a beginning inventory of 600 units at $5 per unit. The company purchases 1,000 units at $4 each in February and 400 units at $6 each in October. Laurel sells 300 units during the year.
Answers (1)
New Questions in Business
During the Great Depression, consumer spending was higher than ever in history. Question 10 options: True False
Answers (2)
A property is being appraised by the cost approach. The appraiser estimates that the land is worth $17,000 and the replacement cost of the improvements is $235,000. Total depreciation from all causes is $23,000.
Answers (1)
NorthWest Corp. obtained the following information from its accounting records: Sales $70,000 Beginning Finished Goods Inventory $10,000 Ending Finished Goods Inventory $46,000 Cost of Goods Sold $22,000 Ending Work-in-Process Inventory $30,000
Answers (1)
Sally is buying a home and the closing date is set for April 20th. The annual property taxes are $1,234.00 and have not been paid yet. How much will the buyer be credited and the seller be debited?
Answers (1)
Throughout history, big business interests have almost always been at odds with environmentally friendly practices.
Answers (1)
Home » Business » A perfectly competitive firm is a: Group of answer choices price taker, because it must accept the market equilibrium price. price participant, because it can coordinate its pricing decisions with other firms.
Sign Up Forgot Password?