Introduction a Pricing without market power(perfect competition) is determined by market supply and demand a The individual producer must be able to forecast the market and then concentrate on managing production (cost) to maximize profits Chapter 1 Slide 4Chapter 11 Slide 4 Introduction ◼ Pricing without market power (perfect competition) is determined by market supply and demand. ◼ The individual producer must be able to forecast the market and then concentrate on managing production (cost) to maximize profits