Identical products, as well as a large number of buyers and sellers, are characteristics of a perfectly competitive market. In such markets, sellers of goods cannot influence the prevailing market price, giving them the role of price takers in the market. True or false?

Question

Business

Holland

9 December, 03:33

Identical products, as well as a large number of buyers and sellers, are characteristics of a perfectly competitive market. In such markets, sellers of goods cannot influence the prevailing market price, giving them the role of price takers in the market. True or false?

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Answers (1)

Know the Answer?

Dixie Vincent · Answer 1

The correct answer is True.

Explanation:

A perfectly competitive market has the following characteristics:

• There are many buyers and sellers in the

market.

• The goods offered by the different sellers

They are largely identical.

• Companies can freely enter and exit the

market.

As a result of these characteristics, perfectly competitive markets, result in:

• The actions of any buyer or seller

have an insignificant impact on the price of

market.

• Each buyer and seller takes the prices of

Market as dice.

A competitive market has many buyers and sellers trading with identical products so that each buyer and seller is price-accepting.

• Buyers and sellers must accept the price

determined by the market.