Perfectly competitive firms are price takers because

Question

Quizplus · Accepted Answer

Perfectly competitive firms are price takers because each firm is too small compared to the market to be able to affect price. This means that individual firms must accept the market price and cannot influence it through their own actions. Any attempt by an individual firm to raise its price above the market price would result in a loss of sales as consumers would simply switch to a lower-priced competitor.

Perfectly Competitive Firms Are Price Takers Because