🎓 GED Exam Prep

In a perfectly competitive market, what characteristic is true for individual firms?

A They have significant control over the market price of their product.
B They are price takers, meaning they must accept the prevailing market price.
C They face high barriers to entry, making it difficult for new firms to join.
D They sell unique and highly differentiated products.

✓ Correct Answer: Option B

In a perfectly competitive market, individual firms are 'price takers' because there are many sellers offering identical products, and no single firm has enough market power to influence the overall market price.

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