question archive For the perfectly competitive firm, the selling price of its product is determined by _____
For the perfectly competitive firm, the selling price of its product is determined by _____
Subject:MarketingPrice:2.88 Bought11
For the perfectly competitive firm, the selling price of its product is determined by _____.
a. the length of time it has been in business
b. the amount it chooses to spend on marketing
c. the interaction of market supply and demand
d. the number of competing firms
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The correct answer is c. the interaction of market supply and demand.
- This is because, in a perfectly competitive market, all producers are price takers, which means that the producers will all take the price that is demanded by the market conditions.
