Firm are Price Taker, not Maker (Dependent Price Policy) : In this type of market, every firm will only accept the price of the commodity which is determined by the powers of market demand and market supply in the market or industry .
It means that the firms are adopting the dependent price policy, because they are producing a very minute fraction of the total supply of the market .
They have no control over the prices. No firm can adopt its independent price policy. The firm will only adjust its production according to prices of the market. None of the firm is ready to sale the product below this price and none of the buyer is ready to pay more than this price.
