Under perfect competition, even though there are many small firms, the individual firm has some influence over the market price.

Name: Under perfect competition, even though there are many small firms, the individual firm has some influence over the market price.
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Question

Quizplus · Accepted Answer

Under perfect competition, each individual firm is a price taker and has no influence over the market price. They must accept the prevailing price and adjust their quantity supplied accordingly.

Under Perfect Competition, Even Though There Are Many Small Firms