As long as the output of an individual firm in a perfectly competitive market is very small with respect to the total industry market for the product, the individual firm has no control over the price it charges for its product.

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Quizplus · Accepted Answer

In a perfectly competitive market, all firms are price takers and have no control over the price. The market sets the price based on the intersection of supply and demand. If an individual firm tries to charge a higher price, customers will simply choose to buy from another firm that offers a lower price. Therefore, the size of the output of an individual firm does not affect its ability to control the price.

As Long as the Output of an Individual Firm in a Perfectly