In perfect competition,price is determined by the
ECONOMICS
JAMB 2010
In perfect competition,price is determined by the
- A. government
- B. sellers
- C. buyers
- D. market
Correct Answer: D. market
Explanation
The price in perfect competition is determined by market forces which is demand and supply. There is one market price in perfect competition, firms can't charge different prices as they are selling identical products. In perfect competition the firms and sellers are price takers.
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