Question:

Price is constant or “given” to the individual firm selling in a purely competitive marketbecause:

A.

the firm\s demand curve is downward sloping.

B.

there are no good substitutes for the firm\s product.

C.

each seller supplies a negligible fraction of total supply.

D.

product differentiation is reinforced by extensive advertising.

Answer» c. each seller supplies a negligible fraction of total supply.