2746. Price-taking firms i.e., firms that operate in a perfectly competitive market, are said to be ‘small’ relative to the market. Which of the following best describes this smallness?

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The individual firm must have fewer than 10 employees
The individual firm faces a downward-sloping demand curve
The individual firm has assets less than Rs. 20 lakhs
The individual firm is unable to affect market price through its output decisions
✅ The correct answer is D.
The individual firm is unable to affect market price through its output decisions best describes this smallness.

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