2. In perfect competition, no single firm has any control over prices. This follows from two assumptions:

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2. In perfect competition, no single firm has any control over prices. This follows from two assumptions: (1) Perfectly competitive industries are composed of many firms, each small relative to the size of the industry, and (2) each firm in a perfectly competitive industry produces homogeneous products.

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Principles Of Microeconomics

ISBN: 9780691150093

13th Global Edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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