"Perfectly competitive firms have total control over the price they set for their product." Explain why the previous statement is correct or incorrect

What will be an ideal response?


The statement is incorrect. Perfectly competitive firms are price takers, which means that they have no control over the price of their product. They must "take" the price given to them by the market as a whole, that is, they must take the price determined by the market demand and market supply.

Economics

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What will be an ideal response?

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