Firms that exhibit priceminustaking behavior A. are independently capable of setting price. B. wait for other firms to set pric

Question

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Firms that exhibit priceminustaking behavior A. are independently capable of setting price. B. wait for other firms to set pric

e, take it as given, and charge a higher price. C. take pricing behavior in their own hands. D. have outputs that are too small to influence market price and thus take it as given.

Business

1 answer:

olga55 [171] · Answer 1 · 2022-08-23T15:03:03+03:00

Answer:

D. have outputs that are too small to influence market price and thus take it as given.

Explanation:

In perfect competition there are large number of firms and individual contribution is less in industry output , it means that firms have output which are too small to influence the market price ans thus it is as given .

Hence ,

The firms which exhibit price - taking behavior have the output which is too small to be influenced by the market price , and therefore remains as it is .

Firms that exhibit priceminustaking behavior A. are independently capable of setting price. B. wait for other firms to set​ pric

Firms that exhibit priceminustaking behavior A. are independently capable of setting price. B. wait for other firms to set pric