Question

multiple choice question
a purely competitive firm can maximize its economic profit (or minimize its loss) by adjusting only its output because it ______.
o is a price maker
o is a price taker
o has access to unlimited resources
o has market power

Explanation:

In a purely - competitive market, firms are price - takers. They have no control over the market price and can only adjust their output level to maximize profit or minimize loss. A price - maker has the ability to influence the price, and firms in pure competition do not have market power. Also, they do not have access to unlimited resources.

Answer:

is a price taker