Question

In a competitive market, no single producer can influence the market price because many other sellers are offering a product that is essentially identical. consumers have more influence over the market price than producers do. government intervention prevents firms from influencing price producers agree not to change the price.

Answer 1

Choice (a) is the most correct. In purely competitive markets, all the firms entering the marketplace are selling basically the same items, with minor differences as a way of differentiation. However, these differences are usually not major. This ensures that most of the products sold in a specific product market are interchangeable.