Perfectly competitive firms are price takers

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It is suggested that perfectly competitive firms are price takers. Althought one rarely, if ever, has an opportunity to test this in the real-world, it is equally rare that the customers goes into any business establishment and tells the seller what the price is. If sellers are price takers and buyers don't dictate price, where does price come from in perfectly competitive markets?

Reference no: EM13892185

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