In a competitive market, no single producer can influence the market price because: a

Business Dec 10, 2020

In a competitive market, no single producer can influence the market price because:

a. Many other sellers are offering a product that is essentially identical,

b. Consumers have more influence over the market price than producers do,

c. Government intervention prevents firms from influencing price,

d. Producers agree not to change the price.

Expert Solution

The correct option is a. Many other sellers are offering a product that is essentially identical.

Explanation:

A competitive market is a place where firms serve identical items due to which they have to face the action of rival firms, and firms are unable to influence the price level. In the competitive market, a firm serves its products that are similar to the products offered by the other firms in that market.

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