Perfectly competitive firms are sometimes called price takers because they have little or no control over product price. 1. A perfectly competitive firm's horizontal demand curve implies that the firm must lower its price to sell more output. 2. 3. If a perfectly competitive firm shuts down in the short run, its variable cost equals zero.
Perfectly competitive firms are sometimes called price takers because they have little or no control over product price. 1. A perfectly competitive firm's horizontal demand curve implies that the firm must lower its price to sell more output. 2. 3. If a perfectly competitive firm shuts down in the short run, its variable cost equals zero.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Perfectly competitive firms are sometimes called price takers because they have little or
no control over product price.
1.
A perfectly competitive firm's horizontal demand curve implies that the firm must lower
its price to sell more output.
2.
3.
If a perfectly competitive firm shuts down in the short run, its variable cost equals zero.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F93b427c0-e1bb-413a-8e63-29bbe2e71a65%2Fac36f6eb-79a7-4e69-909c-9ffc22cfc69f%2F2q9fzbo_processed.png&w=3840&q=75)
Transcribed Image Text:Perfectly competitive firms are sometimes called price takers because they have little or
no control over product price.
1.
A perfectly competitive firm's horizontal demand curve implies that the firm must lower
its price to sell more output.
2.
3.
If a perfectly competitive firm shuts down in the short run, its variable cost equals zero.
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