[amp_mcq option1=”The price of a buyer is higher and the output is relatively higher than that of the producer” option2=”The price of a buyer is less than that of the producer and the output is relatively high” option3=”The price of a buyer is less as compared to the producer and the output is also relatively less” option4=”The price of a buyer is higher than that of the producer and the output is also relatively less” correct=”option3″]<\/p>\n
The correct answer is: C. The price of a buyer is less as compared to the producer and the output is also relatively less.<\/strong><\/p>\n In a perfectly competitive market, there are many buyers and sellers of a homogeneous good. This means that buyers have a lot of choices when it comes to purchasing the good, and sellers have a lot of competition when it comes to selling the good. As a result, the price of the good will be determined by the market, and both buyers and sellers will have to accept this price.<\/p>\n The price of a buyer is less than that of the producer because the buyer is not the one who is producing the good. The buyer is simply purchasing the good from the producer. The producer, on the other hand, has to incur costs in order to produce the good. These costs include the cost of the materials used to produce the good, the cost of labor, and the cost of overhead. As a result, the price of the good must be high enough to cover these costs and allow the producer to make a profit.<\/p>\n The output of a buyer is also relatively less than that of the producer. This is because the buyer is not the one who is producing the good. The buyer is simply purchasing the good from the producer. The producer, on the other hand, has to produce a large quantity of the good in order to make a profit. As a result, the output of the good is relatively higher for the producer than it is for the buyer.<\/p>\n In conclusion, the price of a buyer is less than that of the producer and the output is also relatively less. This is because the buyer is not the one who is producing the good, and the buyer does not have to incur the costs associated with production.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”The price of a buyer is higher and the output is relatively higher than that of the producer” option2=”The price of a buyer is less than that of the producer and the output is relatively high” option3=”The price of a buyer is less as compared to the producer and the output is also relatively … <\/p>\n