In a perfectly competitive market, which of the following statements is true regarding price takers and market equilibrium?

In a perfectly competitive market, firms are known as price takers because they cannot set their own prices; instead, they accept the market price determined by supply and demand. This means that if a company tries to charge more than the market price, customers will simply buy from other firms that offer the same product at the lower price. Market equilibrium occurs when the quantity of goods supplied equals the quantity demanded at a specific price, meaning there is no shortage or surplus. For example, if the market price for apples is $1 per pound and that price allows all apples produced to be sold without excess, then the market is in equilibrium. In this situation, both buyers and sellers are satisfied, and firms continue to produce at that price because they can cover their costs while earning a normal profit.