The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7

-An individual firm in perfect competition can exercise a significant control over the market price of the good.

Question

The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7
 
-An individual firm in perfect competition can exercise a significant control over the market price of the good.

Quizplus · Accepted Answer

In perfect competition, individual firms cannot exercise significant control over the market price of the good. They are price takers and must accept the market price determined by the intersection of the aggregate demand and supply curves.

The Figure Given Below Shows the Aggregate Demand and Supply