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Consumer Education

At a particul...

Question

At a particular price, a producer can only decide how much quantity of the product to sell under perfect competition, the firm is a

A

Price function

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B

Price competition

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C

Price taker

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D

Price maker

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Solution

The correct option is C
Price taker

The firm under perfect competition is a price taker because the seller can only sell any amount of output at the prevailing market price. Price is determined by the industry.

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