Question

In the model of perfect competition: Select one: a. individual firms can influence the price, but only slightly. b. the price is determined by how many years are left in the product's patent. c. the consumer is at the mercy of powerful firms that can set prices wherever they prefer. d. no individual or firm has enough power to affect price.

Answer 1

The correct answer is option d.

Step-by-step explanation:

In perfect competition, there is a large number of buyers and sellers. The participants in the market a so large that no single individual can influence the equilibrium price or quantity.

The firms in this market are price takers. The price and quantity are determined by the market forces of demand and supply. The equilibrium price and quantity are fixed at the point where the demand is equal to supply.