Final answer:
A competitive market is a market situation in which there are many buyers and sellers, and no single buyer or seller has the power to affect the price of the product.
Step-by-step explanation:
A market situation in which there are many buyers and sellers of a product, and no single buyer or seller has the power to affect the price of the product, is called a competitive market. In a competitive market, there is free entry and exit for sellers, meaning they can enter or exit the market whenever they want. Additionally, buyers and sellers have access to all relevant information about the product.
In a competitive market, there is perfect competition where sellers offer identical products and compete with each other based on factors such as price and quality. The forces of supply and demand determine the equilibrium price and quantity in a competitive market.