Which of these statement is true about a firm in perfect competitive market.

A firm can always earn super profit.

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Firm can determine market price

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Firm has to take supply decision at prevailing prices.

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In long run a firm cannot exit from the market.

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Solution

The correct option is C Firm has to take supply decision at prevailing prices.
Perfect competition is a type of market where there are large number of buyers and sellers who deals in homogeneous product due to which no individual unit is able to influence the price of the product and the firms have to quote the price that prevails in the market.

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