Question 9
Market StructuresA major assumption in a perfectly competitive market is that
- A.the number of buyers and sellers is small
- B.individuals cannot influence prices
- C.the quality of products remains the same
- D.prices will always remain constant
Show the answer and explanation
Answer: B (individuals cannot influence prices)
Explanation
There are so many buyers and sellers that no single one can affect the market price; each is a price taker.