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A perfectly competitive firm would set its prices at a perfectly competitive price.
no
no influence over determining price
Demand = Price = Marginal Cost.
when price>marginal cost
A perfectly competitive firm would set its prices at a perfectly competitive price.
no
If an individual in a perfectly competitive firm charges a price above the industry equilibrium price this is bad. This company will go out of business quickly because their customers will go find the lower price.
no influence over determining price
no influence over determining price
Demand = Price = Marginal Cost.
when price>marginal cost
Perfectly competitive, because both firms will compete to earn a greater market share (they are "price takers"), leading to prices that more closely resemble a perfectly competitive market than a monopolistic market (one dominant "price making" firm).
is earning a profit
So no individual can control the price.
so no individual can control the price
This is true