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Assumptions about Perfectly Competitive Markets

A firm under ...

Question

A firm under perfect competition has no control over price of the product.

A

True

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B

False

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Solution

The correct option is A True
True.
Under perfect competition, there are large number of buyers and sellers for a homogeneous product. No single seller or buyer can influence the price.

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Similar questions

Q. State whether the following statement are TRUE and FALSE.

1. There is no price discrimination under Monopolistic competition.

2. In a monopoly market, firm and industry are the same.

3. Product differentiation is not possible under perfect competition.

4. Under perfect competition, price is determined by equilibrium of demand and supply.

Q. Give reasons or explain:

1. Single price prevails in perfect competition.

2. Price discrimination is possible under monopoly.

3. Selling cost is incurred by a firm in Monopolistic competition.

4. A monopolist can control the supply of goods.

5. Sellers and the buyers are price takers in perfect competition.

Q. Price of the product never changes under perfect competition.

Q. A firm under perfect competition gets only a break-even price in the long run.

Q. Why a firm under perfect competition will not lower the price to increase its sales?

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