5. Which of the following is true under conditions of perfect competition? rev: 06 26 2018 There are differentiated products. The market demand curve is perfectly elastic. No single firm can influence the market price. Each individual firm has the ability to set its own price. References Multiple Choice Learning Objective Know the characteristics of a perfectly competitivo market Difficulty: 1 Easy Section: Award: 5.00 points. Characteristics of Perfect Competition A perfectly competitive firm's output is currently such that its marginal revenue is $5 and marginal cost is $4. Assuming profit maximization, the firm should rev: 06 26 2018 cut price and increase output. raise price and decrease output. leave price unchanged and increase output. leave price unchanged and decrease output.