Asked by Jaquez Hoskins on Jun 24, 2024
Verified
Perfectly competitive firms must make all of the following decisions except
A) how much output to supply.
B) which production technology to use.
C) how much of each input to demand.
D) what price to charge for their output.
Perfectly Competitive
A market structure where there are many buyers and sellers, products are identical, and there is free entry and exit in the market.
Production Technology
The quantitative relationship between inputs and outputs.
Input Demand
Input demand refers to the quantity of goods and services a firm requires to produce its own products, often influenced by the price of these inputs and the firm's level of output.
- Analyze the impact of production and pricing decisions in perfectly competitive markets.
Verified Answer
MS
Marcus SparksJun 29, 2024
Final Answer :
D
Explanation :
In a perfectly competitive market, firms are price takers, meaning they cannot set the price for their output but must accept the market price.
Learning Objectives
- Analyze the impact of production and pricing decisions in perfectly competitive markets.