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The above figure shows a perfectly competitive firm. if the market price is $20 per unit, the firm

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Which of the following is true of a perfectly competitive firm?

The correct answer is b. The firm cannot affect the market price for its good. In a perfectly competitive market, a single firm cannot influence the market price.

What is a perfectly competitive firm quizlet?

Perfectly competitive firms: are price takers, since they are not large enough to influence the market price. are individually able to influence the market price. will succeed by charging a price higher than that charged by the rest of the market.

How do you find the output of a perfectly competitive market?

The key goal for a perfectly competitive firm in maximizing its profits is to calculate the optimal level of output at which its Marginal Cost (MC) = Market Price (P).

Which of the following is the best example of a perfectly competitive market?

Therefore, agriculture is the best example of a perfectly competitive market.

figure shows perfectly competitive firm market price $20 unit firm

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