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20 August, 14:34

Identical products, as well as a large number of buyers and sellers, are characteristics of a perfectly competitive market. In such markets, sellers of goods cannot influence the prevailing market price, giving them the role of price takers in the market. True or false?

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  1. 20 August, 16:32
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    The correct answer is True.

    Explanation:

    A perfectly competitive market has the following characteristics:

    • There are many buyers and sellers in the

    market.

    • The goods offered by the different sellers

    They are largely identical.

    • Companies can freely enter and exit the

    market.

    As a result of these characteristics, perfectly competitive markets, result in:

    • The actions of any buyer or seller

    have an insignificant impact on the price of

    market.

    • Each buyer and seller takes the prices of

    Market as dice.

    A competitive market has many buyers and sellers trading with identical products so that each buyer and seller is price-accepting.

    • Buyers and sellers must accept the price

    determined by the market.
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