State whether the following statement are TRUE and FALSE. 4. Under perfect competition, price is determined by equilibrium of demand and supply.

State whether the following statement are TRUE and FALSE.

4. Under perfect competition, price is determined by equilibrium of demand and supply.

Answer:

True


Under perfect competition, each firm is a price taker, while the industry is a price maker. In the industry, the market price is determined by the intersection of the supply and demand curves.

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