An individual firm is only output adjuster at ruling market price in _______.

monopoly

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oligopoly

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perfect competition

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monopolistic competition

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Solution

The correct option is C monopoly
In a monopoly competition, there is only one seller and huge number of buyers due to which there remains no competition for the seller and no substitutes for the buyers. Therefore, a monopolist has ultimate control over the price of the commodity which is known as monopoly power of the firm. So the individual firm is a price adjuster at ruling market price in the long run.

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