In a competitive market, each seller has limited control over the price of his product because a. other sellers are offering similar products. b. buyers exert more control over the price than do sellers. c. these markets are highly regulated by the government. d. sellers usually agree to set a common price that will allow each seller to earn a comfortable profit.

Question

Business

Bailey Ward

30 September, 11:40

In a competitive market, each seller has limited control over the price of his product because a. other sellers are offering similar products. b. buyers exert more control over the price than do sellers. c. these markets are highly regulated by the government. d. sellers usually agree to set a common price that will allow each seller to earn a comfortable profit.

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Answers (1)

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Brenden Kelley · Answer 1

A.

Explanation:

In a perfectly competitive market, buyers and sellers are free (by definition) to enter or leave the market as they choose.

That is, individuals are neither forced into nor prevented from engaging in a certain business, provided they have the expertise and the financial resources required.

A perfectly competitive market has the following characteristics:

-There are many buyers.

-There are many sellers. Firms can freely enter or exit the market. All sellers sell the same or similar products. It means that the goods offered by the various sellers are largely the same.

-Firms can freely enter or exit the market.