[Solved] In which of the following market forms, a firm does not exercise control over price?

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Q.	In which of the following market forms, a firm does not exercise control over price?
A.	Monopoly
B.	Perfect competition
C.	Oligopoly
D.	Monopolistic competition
Answer» B. Perfect competition
Explanation: In perfect competition, the existence of a large number of firms producing and selling the product ensures that an individual firm exercises no influence over the price of the product. The output of an individual firm constitutes a very small fraction of the total output of the whole industry so that any increase or decrease in output by an individual firm has a negligible effect on the total supply of product of the industry. As a result, a single firm is not in a position to influence the price of the product by the increasing or reducing its output.

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