The market sets the price; the price-taking firm faces it as a flat demand line The Market Quantity per week Price per unit Market Supply Market Demand $25 Q* One Price-Taking Firm Quantity per week (this firm) Price per unit $25 Demand facing the firm (= P = MR) Market-clearing price = MR Market price P* = $25. The firm can sell any quantity it likes at $25. The firm is a price-taker: its own demand curve is flat at the market price.