Multiple Choice Question Which of the following explains why a purely competitive firm is a price taker? Multiple choice question. A purely competitive firm produces all of total market supply and therefore must accept the price determined by the market A purely competitive firm offers only a negligible fraction of total market supply and therefore must accept the price determined by the market A purely competitive firm offers a large fraction of total market supply and therefore determines market price A purely competitive firm offers only a negligible fraction of total market supply and therefore must set the price for the market