Question

State whether the following statements are true or false.Give reasons.
In a perfectly competitive market producers are price makers.

• A. True
• B. False

Answer 1

The correct option is B False

The statement is false.

In the perfectly competitive market, the industry is the price makers. This is because we have a large number of buyers and sellers in this market and thus no single producer or consumer can influence the price of any commodity. And thus it is set by the industry and is not in control of any single entity.