Why are some producers forced to sell their products at the prevailing market price?
A. price takers find market analysis is too costly
B. they are very small players in the overall market
C. high degree of similarity to competitor’s products
D. they can increase output without affecting quality
Answer:C
Why are some producers forced to sell their products at the prevailing market price?
A. price takers find market analysis is too costly B. they are very small players in the overall market C. high degree of similarity to competitor’s products D. they can increase output without affecting quality
Explanation: 22. In the _________, if profits are not possible, the perfectly competitive firm will seek out the quantity of output where _____________________ .