Price of product never changes under perfect competition.true or false?
Dear Student
The statement given is False. The price under Perfect competition is determined by the interaction of the market demand and the market supply. The Price set by the market is accepted by all the firms in the market.
However, when the market demand curve or the market supply curve shift, the price for the entire industry may change.
Hope this information clarifies your doubts. Keep posting :-)
Regards
The statement given is False. The price under Perfect competition is determined by the interaction of the market demand and the market supply. The Price set by the market is accepted by all the firms in the market.
However, when the market demand curve or the market supply curve shift, the price for the entire industry may change.
Hope this information clarifies your doubts. Keep posting :-)
Regards