Hkcee 2010 Econ Paper 2 Q2 Portable -

Find the free market equilibrium without intervention.

In a perfectly competitive market, each firm is a price taker . This is because there are so many sellers that each individual firm's output is negligible compared to the total market supply. Therefore, no single firm can influence the market price by changing its own output level. Why other options are incorrect: hkcee 2010 econ paper 2 q2