Question Completion Status: QUESTION 12 The assumption that each firm in a perfe

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Question Completion Status: QUESTION 12 The assumption that each firm in a perfectly competitive market is a price taker basically means that market price is independent of the level of industry output changes in the outpot of an individual firm do not affect the market price the firm can take any price it wants to choose and still sell all its output each firm's supply curve is perfectly elastic QUESTION 13 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answ

Explanation / Answer

The assumption that each firm in a perfectly competetive market is a price taker basically means that each firms supply curve is perfectly elastic. It means that consumers have an infinite ability to switch to alternatives if the price increases, so they would stop buying the good or service.

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