InterviewSolution
Saved Bookmarks
InterviewSolution
| 1. |
Under which of the following forms of market structure does a firm have no control over the price of its product? |
|
Answer» Perfect competition Under Perfect competition forms of market structure does a firm have no control over the price of its product. All goods in a perfectly COMPETITIVE market are considered perfect SUBSTITUTES, and the demand CURVE is perfectly elastic for each of the small, individual FIRMS that participate in the market. These firms are price takers–if one firm tries to raise its price, there WOULD be no demand for that firm's product |
|