The firm in a perfectly competitive market is a price taker. This designation as a price taker is based on the assumption that
A. the firm has some, but not complete, control over its product price.
B. there are so many buyers and sellers in the market that any individual firm cannot affect the market.
C. each firm produces a homogeneous product.
D. there is easy entry into or exit from the market place.
Answer:B
The firm in a perfectly competitive market is a price taker. This designation as a price taker is based on the assumption that
A. the firm has some, but not complete, control over its product price. B. there are so many buyers and sellers in the market that any individual firm cannot affect the market. C. each firm produces a homogeneous product. D. there is easy entry into or exit from the market place.