Final answer:
In purely competitive markets, an individual firm is a price taker and does not control the market price, which is determined by the overall supply and demand.
Step-by-step explanation:
In purely competitive markets, an individual firm does not exert control over market price. Such markets are characterized by many firms selling homogeneous products, making the individual firm a price taker. This is because any attempt by a single firm to raise its price even slightly will result in the loss of all its customers to competitors, as consumers can easily find the same product at the prevailing market price. An example of a market that exhibits characteristics of perfect competition is agriculture, where products like wheat or corn are undifferentiated and a single farmer cannot influence the market price. Instead, supply and demand in the overall market determine the price for these commodities.