In the context of perfect competition, which one of the following is not correct?

Firm has full control over price.

The correct answer is Option (1) → Firm has full control over price.

In a perfect competition market:

• Firms are price takers, not price makers. They have no control over the price; the market determines the price.

• The demand curve faced by a firm is a horizontal straight line, indicating perfectly elastic demand.

• There is freedom of entry and exit for firms.

• Selling costs (like advertising) do not exist, because all firms sell identical products.

Thus, the statement "Firm has full control over price" is not correct under perfect competition.