Question

A perfectly competitive firm
a. chooses its price to maximize profits.
b. sets its price to undercut other firms selling similar products.
c. takes its price as given by market conditions.
d. picks the price that yields the largest market share.

Answer 1

Answer:

C. Takes its price as given by market conditions.

Explanation:

A perfectly competitive firm is basically an atomistic market. A perfectly competitive firm is a price taker which takes the price as given.