Looking at differences between a single firm within a perfectly competitive market and a monopoly, which of the following is true?

a)	A single firm within a perfectly competitive market sees the entire downward sloping demand curve of the perfectly competitive market.

b)	A single firm in a perfectly competitive market is a price taker, so it is not affected by the impacts of the price effect and the quantity effect.

c)	A single firm within the perfectly competitive market can set its price at any level and will not see a change in the demand.

d)	Because it is the only producer in the market, the monopoly will sell the same amount, no matter what price it charges, because it is not affected by the demand curve.

e)	A single firm within a perfectly competitive market must be concerned about the impact of the price effect and the quantity effect.

Answer rating: 100% (QA)

Answer A She will purchase only 3 pounds of potatoes This is b... View the full answer