Question

When it comes to competition and setting prices, it can be said that businesses operating in a Perfect competition

A)
are price takers, taking the price set by supply and demand


B)
are price makers, able to set the price however they wish


C)
are set in interdependence and work with other businesses to create a price


D)
are considered public goods and prices are set by the government

Answer 1

Answer: A

Explanation: In perfect competition, no firm or company has the ability to dictate/make the price, even as they sell a homogeneous commodity. Also buyers are well informed about the product, and competition is extremely high.

Answer 2

I would have to say "B" because I've seen petrol stations clumped together with extremely varying prices. they usually lower the price to gain more business, therefore making more money than the others