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"That means that the individual competitive producer is at the mercy of the market" (Brue & McConnell, 2004, Ch 23). An example of a pure competitive business is Earthbound Farm. In its infancy, Earthbound Farm started as a backyard garden which demonstrates free and easy entry into the market, and standardized products. Over the last 22 years the company has grown its organic farms to more than 30,000 acres.
In a purely competitive structure, a single firm cannot impact pricing in the market because demand for its products is elastic. Thus, price can only be affected by all firms simultaneously reducing or increasing output...
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