Perfect Competition Perfectly competitive market: all participants are price-takers a Perfectly competitive industry: all producers are price-takers Price-taker: whose action has no effect on market prIce a Price-taking producer: market price does not change because of the quantity he sells a Price-taking consumer: market price does not change because of the amount he buysPerfect Competition ◼ Perfectly competitive market: all participants are price-takers ◼ Perfectly competitive industry: all producers are price-takers ◼ Price-taker: whose action has no effect on market price ◼ Price-taking producer: market price does not change because of the quantity he sells. ◼ Price-taking consumer: market price does not change because of the amount he buys