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Price-taking firms i e firms that operate in a perfectly competitive...

This question belongs to Commerce Economics
Economics
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Price-taking firms i.e., firms that operate in a perfectly competitive market, are said to be 'small' relative to the market. Which of the following best describes this smallness?

Answer & Solution
Correct Answer: Option D
The individual firm is unable to affect market price through its output decisions best describes this smallness.
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