Question

In a competitive market,

a. the goods offered by the different sellers are unique.
b. accounting profit is driven to zero as firms freely enter and exit the market.
c. no single buyer or seller can influence the price of the product.
d. there are only a small number of sellers.

Answer 1

The answer is C.

Step-by-step explanation:

The following are the characteristics of perfect competitive market:

1. The product(goods and services) are homegenous i.e they are identical. The same brand, quality etc.

2. There is little or low barrier to entry and exit

3. There large number of buyers and sellers that nobody(buyer or seller) can influence the price of goods and services.

4. The sellers or producers are price-taker