This question asks you to analyze how the ideal conditions of a purely (perfectly) competitive industry influence the motives and decisions of its participating firms. In perfect competition, the:
A) Firms seek to collude and form cartels.
B) Firms strive to differentiate their products.
C) Firms aim to maximize profits by setting prices higher than the market equilibrium.
D) Firms are price takers and produce at the level where marginal cost equals marginal revenue