Asked by
Hollyann Yannacone
on Oct 08, 2024
Verified
Price is constant to the individual firm selling in a purely competitive market because:
A) the firm's demand curve is downsloping.
B) of product differentiation reinforced by extensive advertising.
C) each seller supplies a negligible fraction of total supply.
D) there are no good substitutes for its product.
Product Differentiation
A marketing strategy that businesses use to distinguish their products from similar offerings on the market.
Purely Competitive
Description of a market structure where there are many buyers and sellers, products are homogeneous, and there are no barriers to entering or exiting the market.
- Analyze the implications of being a price taker in a purely competitive market on a firm's pricing and output decisions.
Verified Answer
SM
Learning Objectives
- Analyze the implications of being a price taker in a purely competitive market on a firm's pricing and output decisions.