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The demand curve faced by a perfectly competitive firm is vertical.
In a perfectly competitive market, marginal revenue is the same as the market price.
In short-run equilibrium in a perfectly competitive market, firms always make zero economic profit
In order to maximize profits, a firm should produce the level of output at which total revenue is maximized.
In a constant cost industry, the cost curves of individual firms will shift upward as the industry output expands.
A perfectly competitive firm is a:
a. price maker.
b. price giver.
c. price taker.
d. price leader.
A perfectly competitive firm has no influence over price because:
a. consumers establish the prices of products.
b. antitrust laws constrain perfectly competitive firms.
c. its output is insignificant relative to the market as a whole.
d. it is unaware of the demand curve it faces.