For a market to be competitive:a. each buyer and seller is small, relative to the whole market; no single decision-maker has any influence over the market price. B. sellers must produce goods and services that are different from their competitors. C. sellers should have substantial pricing power. D. the price must be a fair price

Question

Zara Lane

Business

7 December, 22:08

For a market to be competitive:a. each buyer and seller is small, relative to the whole market; no single decision-maker has any influence over the market price. B. sellers must produce goods and services that are different from their competitors. C. sellers should have substantial pricing power. D. the price must be a fair price

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Answers (1)

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Reid Bass · Answer 1

Answer: Option (A) is correct.

Explanation:

Each of the buyer and seller are small when we are relating it with the whole market. so, there will be no power in the hands of a single decision maker and if a firm wants to change their prices then it will not have any influence on the market price. In a competitive market, there are large number of buyers and sellers, thus, one buyer or seller doesn't have any impact on the market price.