In a perfectly competitive market
A)each firm sets its own price
B)there are a few firms selling unique products
C)when one firm ceases production, the market equilibrium price tends to rise
D)none of the above. in a perfectly competitive market, firms sell homogenous products and

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms do not set their own prices due to the market's competitive nature and the homogeneity of products. There are many firms selling identical (homogeneous) products, not unique ones, and the exit of a single firm typically does not affect the market equilibrium price due to the large number of firms.

In a Perfectly Competitive Market