In case of perfect competition, ______.

a firm is able to charge higher price

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a firm is able to charge uniform price

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a firm is able to sell any amount at the prevailing price

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both (b) and (c)

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Solution

The correct option is C both (b) and (c)
Perfect competition is a form of the market in which there is a large number of buyers and sellers and where homogeneous product is sold at a uniform price.In case of perfect competition,
a) a firm is able to charge uniform price
b) a firm is able to sell any amount at the prevailing price
Firm's demand curve under perfect competition is a horizontal straight line parallel to X-axis.Under perfect competition, AR is constant for a firm. Hence, AR = MR.

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