In a perfectly competitive dairy market, what is the primary reason firms are considered price takers?

In a perfectly competitive dairy market, firms are considered price takers because there are many producers and consumers, and no single firm can influence the market price. Each dairy farm produces similar products, like milk, which makes their milk interchangeable with others. Since consumers can easily switch to another supplier if one raises prices, individual farms must accept the market price set by supply and demand. For example, if the market price for milk is $3 per gallon, a dairy farm cannot charge $4 without losing customers to competitors. This situation ensures that all firms operate at the same price level, leading to a stable market environment.