Practicing Success
Practicing Success
CUET Preparation Today
| Number of firms in perfect competition is so large that each firm is “small” relative to entire market. What does being “small” mean here? |
Individual firm can affect price through its output decisions Individual firm cannot affect price through its output decisions Firms having less than 20 workers Firm having investment of less than 20 lakhs in assets |
| Individual firm cannot affect price through its output decisions |
| Number of firms in the perfect competition is so large that each firm is very small relative to the market. This means no single firm n affect the market price through its output decisions. It is the price taker and not price maker. |
