Which of the following will not be true of a perfectly competitive market?
A)Each individual buyer or seller has an imperceptible effect on the market price.
B)A new firm may incur a cost upon entering a market but has access to the same technology and inputs as established firms.
C)Different consumers may pay different prices for the same product.
D)Buyers and sellers take the market price as given when making purchasing or production decisions.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, all consumers pay the same price for a product from any seller. This is because sellers must charge the market price, which is determined by the forces of supply and demand, and there is no room for price discrimination. Therefore, different consumers cannot pay different prices for the same product. In a perfectly competitive market, all consumers pay the same price for the same product. This is because firms in a perfectly competitive market are price takers, meaning they have no control over the market price and must sell their goods at the prevailing market price. Therefore, if different consumers pay different prices, it violates the assumption of a perfectly competitive market.

Which of the Following Will Not Be True of a Perfectly