Asked by
Karma Gurung
on Oct 27, 2024
Verified
The assumptions of perfect competition imply that:
A) individuals in the market accept the market price as given.
B) individuals can influence the market price.
C) the price will be fair.
D) the price will be high.
Perfect Competition
An idealized market structure where all participants are price takers due to the presence of many participants, homogeneous products, and no barriers to entry.
Market Price
The price at which a good or service is offered in the marketplace.
- Discern the assumptions and essential conditions that facilitate perfect competition.
- Recognize the role and implications of being a price taker versus a price maker in perfect competition.
Verified Answer
DS
Learning Objectives
- Discern the assumptions and essential conditions that facilitate perfect competition.
- Recognize the role and implications of being a price taker versus a price maker in perfect competition.