A perfectly competitive firm is a price taker because?
Understand the Problem
The question is asking for an explanation of why a perfectly competitive firm is considered a price taker, likely requiring an understanding of market structures in economics.
Answer
There are so many buyers and sellers in the market that any individual firm cannot affect the market price.
The final answer is that there are so many buyers and sellers in the market that any individual firm cannot affect the market price.
Answer for screen readers
The final answer is that there are so many buyers and sellers in the market that any individual firm cannot affect the market price.
More Information
In a perfectly competitive market, firms produce identical products and have no control over the market price. Since there are many sellers, the actions of an individual firm do not influence the market price, making each firm a price taker.
Sources
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