A seller in a competitive market can:

a. sell all it wants at the going price, so it has no reason to charge less.

b. influence the market price by adjusting his output.

c. influence the profits earned by competing firms by adjusting his output.

d. All of the above are correct.

Question

Business

Konnor Abbott

27 November, 08:56

A seller in a competitive market can:

a. sell all it wants at the going price, so it has no reason to charge less.

b. influence the market price by adjusting his output.

c. influence the profits earned by competing firms by adjusting his output.

d. All of the above are correct.

+5

Answers (1)

Know the Answer?

Kaeden Mckenzie · Answer 1

Answer: option A

Explanation: In simple words, competitive market refers to the market structure in which large number of buyers and sellers are present each operating at a small level and selling similar production with no interdependence on one another.

In such a structure, the sellers has to accept the price that is determined by the market forces of supply and demand as no individual participant can influence the price by changing output due to low level of operations.

Thus, the correct option is A.

A seller in a competitive market can:a. sell all it wants at the going price, so it has no reason to charge less.b. influence the market price by adjusting his output.c. influence the profits earned by competing firms by adjusting his output.d. All of the above are correct.

A seller in a competitive market can:

a. sell all it wants at the going price, so it has no reason to charge less.

b. influence the market price by adjusting his output.

c. influence the profits earned by competing firms by adjusting his output.

d. All of the above are correct.