In perfect competition; price is determined by the?

By: |Published on: Oct 23|Categories: Economics JAMB| 0 comments

A. government
B. sellers
C. buyers
D. market

Correct Answer:

Option 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.

Users Also Read These:

SEE ALSO  If a country's national income increased from N1000 billion over a period of 2 years, what was the average annual rate of growth of national income over the period?

Copyright warnings! Do not copy.