The behaviour of an individual perfectly competitive firm has a perceptible influence on the market price.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, an individual firm has no control over the market price. The market price is determined by the interaction of supply and demand from all firms in the market. Therefore, the behaviour of an individual firm has no perceptible influence on the market price.

The Behaviour of an Individual Perfectly Competitive Firm Has a Perceptible