Price is constant or "given" to the individual firm selling in a purely competitive market because:

Question

Quizplus · Accepted Answer

In a purely competitive market, there are a large number of small firms selling an identical product. As each firm supplies only a negligible fraction of total supply, they have no control over the market price. The price is determined by the overall market demand and supply and each firm has to take the market price as given. Therefore, the correct answer is C.

Price Is Constant or "Given" to the Individual Firm Selling