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प्रश्न
A firm under perfect competition is a price taker but the industry is the price maker. Defend or refute this statement by giving a reason.
संक्षेप में उत्तर
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उत्तर
The price of the commodity is determined by the interaction of market demand and market supply. So, the market or the industry is the price-maker. However, no individual firm in this industry can influence this price because of its insignificant market share. It only has to accept the market-determined price and can sell any amount of the commodity. So firm is the price-taker. Therefore, the statement is to be defended.
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Market Demand
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