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Which type of firm has no control over the price of its product?

group of answer choices
a. an unregulated monopolist
b. an oligopolist
c. a monopolistically competitive firm
d. a perfectly competitive firm

1 Answer

4 votes

Final answer:

A perfectly competitive firm has no control over the price of its product and must accept the market price due to the high level of competition and the presence of many sellers offering identical products.

Step-by-step explanation:

The type of firm that has no control over the price of its product is a perfectly competitive firm. Firms in a perfectly competitive market are price takers, which means they must accept the market price set by the forces of supply and demand. They produce goods that are perfect substitutes for one another, and there are no barriers to entry or exit from the market.

In contrast, an unregulated monopolist has significant control over the price because it is the sole provider of a product or service in the market and can set prices above the competitive level. An oligopolist operates in a market with few firms that may collude to set prices, although they still face some competitive pressures. A firm in monopolistic competition has some control over its price as it sells differentiated products, but its power is limited by the presence of many competitors offering similar products.

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