Question

A competitive market is one in which there a. are so many buyers and so many sellers that each has a negligible impact on the price of the product. b. are many sellers, and each seller has the ability to set the price of his product. c. are many sellers, and they compete with one another in such a way that some sellers are always being forced out of the market. d. is only one seller, but there are many buyers.

Answer 1

Answer:

A) are so many buyers and so many sellers that each has a negligible impact on the price of the product.

Explanation:

A competitive market or a perfect competition market is characterized by having many suppliers and many consumers, and the products and services offered are similar and substitute to each other. This results in every seller and every consumer being a price taker, since no seller or consumer is large enough to influence the equilibrium price.

Answer 2

Answer:

a. are so many buyers and so many sellers that each has a negligible impact on the price of the product

Explanation:

If the sellers can set the price then, eahc company should be providing different goods as customer will settle for the same price given the same good.

Under competitive market if a seller offer above equilibrium their sales will drop to zero as none customer will purchase as there are a lot of seller they can potencially buy goods from. Same is true if a consumer wants to settle below equilibrium.

Therefore, the seller nor buyer can impact the price they are both price-takers.