In a perfectly competitive market, all producers sell identical goods or services. Additionally, there are few buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are pricetakers.

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Mathematics

Cassius Finley

14 March, 22:27

In a perfectly competitive market, all producers sell identical goods or services. Additionally, there are few buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are pricetakers.

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Krause · Answer 1

This question is fill in the blanks. So there is a total of 3 sentences in this question.

1. In a perfectly competitive market, all producers sell identical goods or services. - One of the characteristics of a perfect competition. This means that the product must be indistinguishable from anycompetitor's product.

2. Additionally, there are many buyers and sellers. - any one firm’s output in contrast to the market output is gradual and what one firm does has no affect on other firms.

3. Buyers and sellers in perfectly competitive markets are price takers. - This means that they accept the price offered in stores.