Multiple choice

A perfectly competitive firm producer has control over

  1. price

  2. production as well as price

  3. control over production price and consumers

  4. none of the above

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A perfectly competitive firm has no control over price (it's a price taker), no control over consumers, and cannot influence market supply through individual decisions. The firm only chooses its output level. Therefore, the correct answer is 'none of the above' - the firm controls production quantity only, not price or consumers.

Keep practicing — related questions