Question

Which of the following is true when there are many buyers and sellers acting independently in a market?

A) Monopoly is likely to emerge.
B) Prices are likely to be controlled by the government.
C) Perfect competition is more likely to occur.
D) The market is prone to excessive regulation.

Answer 1

When there are many buyers and sellers acting independently in a market, perfect competition is more likely to occur.

Step-by-step explanation:

When there are many buyers and sellers acting independently in a market, perfect competition is more likely to occur. Perfect competition is a market structure where there are a large number of buyers and sellers, and no single participant has significant market power. In a perfectly competitive market, prices are determined by the forces of supply and demand, and no single buyer or seller can control the price.