In a perfectly competitive industry,each firm:

A) is a price maker.
B) produces about half of the total industry output.
C) produces a differentiated product.
D) produces a standardized product.

Question

In a perfectly competitive industry,each firm:A) is a price maker.B) produces about half of the total industry output.C) produces a differentiated product.D) produces a standardized product.

PineappleKING APPLE · Accepted Answer

Final Answer : D, Explanation :  In a perfectly competitive industry, each firm produces a standardized product, meaning there is no differentiation between the products produced by different firms in the industry. This is a key characteristic of perfect competition, which also means that firms are price takers rather than price makers. Firms in a perfectly competitive industry have no control over the market price and must accept the prevailing price in the market. Therefore, choice D is the correct answer.

In a perfectly competitive industry,each firm:

A) is a price maker.
B) produces about half of the total industry output.
C) produces a differentiated product.
D) produces a standardized product.

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