Question

Identical products, as well as a large number of buyers and sellers, are characteristics of a market. In such markets, sellers of goods influence the prevailing market price, giving them the role of price in the market.a) trueb) false

Answer 1

Answer:

The answer here is false.

Explanation:

The answer is false.

This type of market is called perfect competition.

Products are identical. The buyers can buy from any seller without the fear of having different quality or quantity.

There are large number of buyers and sellers. The bargaining power of buyers is very high because sellers selling the same product are much.

These above-mentioned points made sellers to be powerless because any seller that increases its price will lose customers because buyers can get the same product else where at a lower price. Seller are price-takers, they can't influence the prevailing market price. It is the market that determines the price.