Although individual purely competitive firms can influence the price of their product, these firms as a group cannot influence market price.

Question

Quizplus · Accepted Answer

In a purely competitive market, individual firms cannot influence the price of their product because the market price is determined by the overall supply and demand. However, as a group, these firms determine the total supply in the market, which along with demand, sets the market price.

Although Individual Purely Competitive Firms Can Influence the Price of Their