In which of the following market forms a firm does not exercise control over price?

Options

A. Mixed competition
B. Monopoly
C. Oligopoly
D. Perfect competition

Answer

D

Explanation

Perfect Competition is a form of market in which there are very large number of buyers and sellers of a homogeneous product. Price is determined by the market forces of the supply and demand and not by firms. All firms I that market act, as price-takers- i.e., they can sell as much as they like at the going market price, and nothing at any higher price. This is usually obsrved inmarkets for agricultural commodities like jute, cotton, wheat, etc.