In a competitive market, the actions of any single buyer or seller will
A)have a negligible impact on the market price.
B)have little effect on market equilibrium quantity but will affect market equilibrium price.
C)affect marginal revenue and average revenue but not price.
D)adversely affect the profitability of more than one firm in the market.

Question

Quizplus · Accepted Answer

In a competitive market, there are many buyers and sellers who are price takers, meaning they have no individual control over the market price. This means that any single buyer or seller's actions will have a negligible impact on the market price. The market price is determined by the forces of supply and demand, and individual actions cannot significantly influence these forces. Therefore, choice A is the best answer.

In a Competitive Market, the Actions of Any Single Buyer