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Price-Taking Firm:A firm is described as a price-taker when it has no significant control over the price of its product. This means that the firm cannot influence the price of its product by altering its supply. Usually it is the market or industry demand and supply that will interact to fix the price of the product which is handed over to all firms in the industry. The firm can sell any quantity at the market or industry determined price. The perfectly competitive firm is a price-taking firm.
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