GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In perfectly competitive market
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Both are the price-takers
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Firm is the price-taker and industry the price maker
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Firm is the price giver and the industry the price-taker
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None of these
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Explanation:
Detailed explanation-1: -Summary. A perfectly competitive firm is a price taker, which means that it must accept the equilibrium price at which it sells goods. If a perfectly competitive firm attempts to charge even a tiny amount more than the market price, it will be unable to make any sales.
Detailed explanation-2: -Ïn perfect competition, industry is the price maker and firm is the price taker.
Detailed explanation-3: -All economic participants are considered to be price-takers in a market of perfect competition or one in which all companies sell an identical product, there are no barriers to entry or exit, every company has a relatively small market share, and all buyers have full information of the market.
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