Question

Suppose that the market for computers is dominated by a single firm, like Dell, that is able to exert influence over prices and output. This situation violates the perfect competition assumption of:________________.

Answer 1

many buyers and sellers

Step-by-step explanation:

Based on the information provided within the question it can be said that this situation violates the perfect competition assumption of many buyers and sellers. This is a model that many buyers and sellers in a competitive market agree on a single market price, and that no individual has influence over the price. Therefore if a single company, like Dell in this scenario, is able to influence the price then it is violating this assumption.