When a firm in a purely competitive market cannot influence the market price no matter how much output the firm produces, it is a price taker.
Market power is additionally referred to as monopoly power. A competitive firm could be a “price taker.” Thus, a competitive firm cannot alter the value of a decent. A perfectly competitive firm could be a worth taker, which implies that it should settle for the equilibrium worth at which it sells a product.
There are such a large number of consumers and sellers that none of them has any influence on the market value despite what quantity any of them purchases or sells. A firm in an exceedingly utterly competitive market will react to costs. However, it cannot affect the costs it pays for the factors of production or the costs it receives for its output.
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