Under perfect competition, the industry as a whole is considered the price maker, while individual firms within the industry are price takers. This means that the industry as a whole sets the market price for the product, and individual firms have no control over the price.

To understand this concept, let's look at a table and diagram to illustrate the relationship between industry and firm under perfect competition.

Table:

| Quantity Demanded | Price |
|-------------------|-------|
| 100 | $10 |
| 200 | $9 |
| 300 | $8 |
| 400 | $7 |
| 500 | $6 |

Diagram:

Price
|
$10 |------------------------
| \
| \
| \
| \
| \
| \
| \
| \
| \
| \
| \
| \
$6 |___________________________________\_____________________________________ Quantity Demanded
0 100 200 300 400 500

In the table above, we have the quantity demanded of a product and its corresponding price. As the quantity demanded increases, the price decreases. This is the demand curve for the industry as a whole.

Under perfect competition, individual firms are price takers, which means they have no influence over the market price. They have to accept the price set by the industry and adjust their production accordingly. For example, if the market price is $10, each firm will produce and sell their goods at that price. If a firm tries to charge a higher price, consumers will simply purchase the product from another firm at the lower market price.

The diagram above represents the industry's demand curve. The market price is determined by the intersection of the demand curve and the supply curve. Each individual firm's supply curve is perfectly elastic, meaning they can sell any quantity at the market price without affecting it.

In conclusion, under perfect competition, the industry is the price maker as it determines the market price based on the demand and supply conditions. Individual firms are price takers as they have no control over the price and must accept the market price in order to sell their products.

In perfect market conditions (also called perfect competition) a firm is a price taker because other firms can enter the market easily and produce a product that is indistinguishable from every other firm’s product.  This makes it impossible for any firm to set its own prices.

A price taker is a firm that cannot have any say in setting its own prices.  A price taker simply has to accept the market price.  This is in contrast to a price maker, which can have an influence over the price at which it sells its goods.

In perfect competition, there are two main reasons why a firm cannot get away with setting its prices above the market price.  First, there is no difference between its product and that of every other firm in the market.  Therefore, no one will pay extra for a firm’s product the way that they might pay extra for something like Nike shoes.  Second, if a firm were to succeed in setting a higher price, more firms would enter the market, attracted by the higher profits that were available.  This would increase supply and drive down the price of the firm’s product.

In perfect competition, firms sell homogeneous products and it is easy for a firm to enter the market.  These two factors make it impossible for firms to set their prices above the market price.  This makes them into price takers.