Question

In commodity markets it is typically true that: (note: only one statement is correct) Group of answer choices there are only a few producers. any producer can affect the market price depending on the quantity that he or she sells. producers are "price takers". there are many producers, but it is very hard for new producers to enter the market.

Answer 1

Answer:

producers are "price takers".

Explanation:

Commodity markets is an example of A perfectly competitive market. A perfectly competitive market is characterised by many buyers and sellers of homogenous goods and services.

Because products are homogenous, sellers cannot set the price for their goods. Prices are set by forces of demand and supply,therefore, suppliers are price takers.

There are no barriers to entry and exit of firms into the market.

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