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.

AI-generated content may contain errors. Please verify critical information

Thank you for voting!
Use Quizgecko on...
Browser
Browser