Vidyalelo
Commerce · Q77

Economics

Graduate and Post Graduate · Commerce · question 77

Q77

A firm under perfect competition is

A.
Price maker
B.
Price breaker
C.
Price taker
Answer
D.
Price shaker

Answer: Option C

Solution

Answer: Option C
Solution:
A firm under perfect competition is Price taker. In perfect market conditions (also called perfect competition) a firm is a price taker because other firms can enter the market easily and produce a product that is indistinguishable from every other firm's product. This makes it impossible for any firm to set its own prices.