Perfectly competitive firms cannot individually affect market price because
A. Demand is perfectly inelastic for their goods.
B. There are many firms, none of which has a significant share of total output.
C. The government exercises control over the market power of competitive firms.
D. There is an infinite demand for their goods.
Answer: B
Economics
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The growth rate in the autonomous factor (a) in the production function can be directly influenced by all of the following EXCEPT
A) environmental legislation. B) support for research and development. C) subsidies for education. D) initiation of tax indexation.
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