Asked by Tyson Fisher on Jun 12, 2024
Verified
A perfect competitor would
A) never charge above market price but might charge below market price.
B) never charge below market price but might charge above market price.
C) always charge market price.
Market Price
The current price at which a good or service can be bought or sold in a marketplace, determined by the forces of supply and demand.
- Learn about the fundamentals of perfect competition and the strategic behaviors of companies within such market configurations.
Verified Answer
AK
Abhishek Kalarikkal SukumarJun 18, 2024
Final Answer :
C
Explanation :
A perfect competitor is a theoretical concept in which the market is composed of many small firms that all produce identical products, and no individual firm has any control over the market price. Therefore, a perfect competitor would always charge the market price since they cannot influence it. The other options imply that the firm has some sort of market power, which would disqualify them from being a perfect competitor.
Learning Objectives
- Learn about the fundamentals of perfect competition and the strategic behaviors of companies within such market configurations.
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