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Identical products, as well as a large number of buyers and sellers, are characteristics of a perfectly competitive market. In such markets, sellers of goods cannot influence the prevailing market price, giving them the role of price takers in the market. True or false?

1 Answer

6 votes

Answer:

The correct answer is True.

Step-by-step explanation:

A perfectly competitive market has the following characteristics:

• There are many buyers and sellers in the

market.

• The goods offered by the different sellers

They are largely identical.

• Companies can freely enter and exit the

market.

As a result of these characteristics, perfectly competitive markets, result in:

• The actions of any buyer or seller

have an insignificant impact on the price of

market.

• Each buyer and seller takes the prices of

Market as dice.

A competitive market has many buyers and sellers trading with identical products so that each buyer and seller is price-accepting.

• Buyers and sellers must accept the price

determined by the market.

User Brian Agnew
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