GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Under perfect competition a firm can produce with
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Maximum profit
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An optimum plant
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An optimum output
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Identical products at low cost
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Explanation:
Detailed explanation-1: -identical products at low cost.
Detailed explanation-2: -The fundamental condition of perfect competition is that there must be a large number of sellers or firms.
Detailed explanation-3: -Under perfect competition, the firm must accept the price determined in the market. The firm is a price taker–it can produce as much or as little as it likes without affecting the market price. Each firm must match the price offered by its competitors because the products are identical.
There is 1 question to complete.