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Monopoly Impacts and Government Interventions

A firm under ...

Question

A firm under perfect competition is a _______.

[1 mark]

A

price maker

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B

price indulger

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C

price taker

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D

none of the above

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Solution

The correct option is C price taker
A firm under perfect competition is a price taker. It cannot influence/change the market price, implying a constant AR for a firm corresponding to all levels of output.

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