Question

How should firms in perfectly competitive marketsLOADING... decide how much to​ produce? Perfectly competitive firms should produce the quantity where A. the difference between explicit costsexplicit costs and implicit costsimplicit costs is as large as possible. B. the market price is as highhigh as possible. C. their individual price is equal to the market price. D. their individual price is as highhigh as possible. E. the difference between total revenue and total cost is as large as possible.

Answer 1

Answer:

C. their individual price is equal to the market price.

Explanation:

Key takeaways for a perfect competitive market:

"The major types of market structure include monopoly, monopolistic competition, oligopoly, and perfect competition.

Perfect competition is an industry structure in which there are many firms producing homogeneous products. None of the firms are large enough to influence the industry.

The characteristics of a perfectly competitive market include insignificant contributions from the producers, homogenous products, perfect information about products, no transaction costs, and no long-term economic profits."

Reference: Boundless. “Perfect Competition” Lumen, 2019