8.1 Perfectly Competitive Markets Many firms compete in the market,and therefore each firm faces a significant number of direct competitors for its products. Because each individual firm sell a sufficiently small proportion of total market output,its decisions have no impact on market price.Thus each firm takes the market price as given. In short,firms in perfectly competitive markets are price takers. 8.1 Perfectly Competitive Markets ❑ Many firms compete in the market, and therefore each firm faces a significant number of direct competitors for its products. Because each individual firm sell a sufficiently small proportion of total market output, its decisions have no impact on market price. Thus each firm takes the market price as given. In short, firms in perfectly competitive markets are price takers