Under perfect competition

A) many firms produce differentiated products.
B) prices are determined by the market and there are no price makers.
C) a few firms have an influence over price.
D) None of the choices are correct under perfect competition.

Perfect Competition

A market structure characterized by a large number of small firms, a homogeneous product, and freedom of entry and exit, leading to price taking behavior.

Price Makers

Firms or entities that have the power to influence the price of a good or service in the market, typically due to a lack of competition.

Differentiated Products

Products that are similar but distinguished from each other by variations in quality, features, branding, or some other aspect valued by consumers.