9.1 Market Structure and Firm
Behaviour LO 1
A competitive market structure is one in which individual firms have
no market power—that is, they have no power to influence the price
at which they sell their product.
Competitive behaviour exists when firms actively compete against
one another, responding directly to other firms’ actions.
Perfectly competitive firms do not display competitive behaviour
because the actions of any one firm would have no effect on any
other firm.