Final answer:
In a perfectly competitive market, firms are price takers and have no control over the price they charge for their product.
Step-by-step explanation:
Firms in a perfectly competitive market are known as price takers. This means that they have no control over the price they charge for their product. Once the market determines an equilibrium price, firms must accept this price and cannot raise it, not even by a cent.Firms in a perfectly competitive market are known as price takers. This means that they have no control over the price they charge for their product.
A perfectly competitive firm is a small player in the overall market. It must accept the prevailing equilibrium price determined by supply and demand in the entire market, rather than setting its own price.