Question

Identical products, as well as a large number of buyers and sellers, are characteristics of aperfectly competitive market. In such markets, sellers of goodscan influence the prevailing market price, giving them the role of price in the market. True or False: The market for tomatoes does not exhibit the two primary characteristics that define perfectly competitive markets.

Answer 1

Answer: "In such markets, sellers of goods can influence the prevailing market price, giving them the role of price in the market." is wrong ,

The correct statement is "In such markets, sellers of goods CAN'T influence the prevailing market price, giving them the role of price TAKERS in the market".

"The market for tomatoes does not exhibit the two primary characteristics that define perfectly competitive markets." is FALSE because the market of tomatoes does exhibit the two characteristics:

• Identical products.
• Large number of buyers and sellers