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26 November, 13:59

In 1 or 2 sentences, describe why sellers in a perfectly competitive market have no control over price.

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  1. 26 November, 14:48
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    Answer;

    In perfect competition market no buyer or seller has any influence over the price. The price is determined by demand and supply in the market and not by individual sellers or buyers.

    Explanation;

    Both the firms and the buyers are price takers, they take the market price but have no ability to influence the price. The consumer and the firm are price takers, which means the price taking consumer assumes that he or she can buy any quantity at the market price without affecting the price, and the price taking firm assumes it can sell whatever quantity it wishes at the market price without affecting the price.
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