Perfectly Competitive Markets a Price Taking o The individual firm sells a very small share of the total market output and, therefore, cannot influence market price o The individual consumer buys too small a share of industry output to have any impact on market price Chapter 8 Slide 5Chapter 8 Slide 5 Perfectly Competitive Markets ◼ Price Taking ⚫ The individual firm sells a very small share of the total market output and, therefore, cannot influence market price. ⚫ The individual consumer buys too small a share of industry output to have any impact on market price