Question

perfect competition ________.
a. makes it impossible for any single seller to set the price for their products
b. occurs when a few large companies compete with another for business
c. puts consumers at a disadvantage due to higher prices
d. is unlikely to occur in a free - market economy
e. makes it easy for sellers to control the prices of their goods and services

Explanation:

To solve this, we analyze each option based on the concept of perfect competition:

• Option A: In perfect competition, there are many sellers with homogeneous products, so no single seller can set prices (they are price takers). This matches the definition.
• Option B: A few large companies competing is oligopoly, not perfect competition. Eliminate B.
• Option C: Perfect competition typically leads to lower prices (due to competition) and benefits consumers, so C is wrong.
• Option D: Perfect competition is more likely in free - market economies with many small firms. D is incorrect.
• Option E: Sellers in perfect competition can't control prices (they take the market price), so E is wrong.

Answer:

A. makes it impossible for any single seller to set the price for their products