Two features of the demand facing a firm will ensure that the firm must act as a price taker:
a. That other firms be willing to provide all that is demanded at the current price, and
b. That consumers of the firm's output regard it as identical to that of its competitors.
Explain why both of these conditions are required if the firm is to treat the price of its output as given. Describe what the demand facing the firm would be like if one of the conditions held but not the other?