The only decision that a perfectly competitive firm makes is:
A)what price to charge.
B)what quantity to produce.
C)how much to spend on advertisements.
D)how much to price discriminate.
E)how to differentiate its products from its rivals.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the price of the product is determined by the market forces of supply and demand. Therefore, firms cannot set the price, they are price-takers. The only decision a perfectly competitive firm makes is what quantity to produce, in order to maximize profits.

The Only Decision That a Perfectly Competitive Firm Makes Is