A market situation in which there are many buyers and sellers of a product and no single buyer or seller can control the price is an oligopoly. a monopolistic marketplace. a monopoly. pure competition.

Question

Carla Cain

Business

29 March, 00:19

A market situation in which there are many buyers and sellers of a product and no single buyer or seller can control the price is an oligopoly. a monopolistic marketplace. a monopoly. pure competition.

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Answers (1)

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Sonia Frey · Answer 1

The correct answer is pure competition.

Explanation:

The pure competition represents the market situation where there are a large number of buyers and sellers. These sellers provide homogenous products. There is no restriction on entry or exit of the firms in the market. The consumers have perfect knowledge at low cost or free of cost.

Because of a large number of buyers and sellers, no single agent can affect the market price. The price level is determined by the intersection of demand and supply.