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The theory of the firm under perfect competition — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsThe theory of the firm under perfect competition3 Marks
Question
Why is a firm under Perfect Competition a price-taker? Explain.
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Answer

Price taker means that an individual firm has no option but to sell at a price determined by the industry. It is because the individual firm cannot influence the price on its own further because the individual firm’s share in total market supply is negligible.

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