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.

Question

Quizplus · Accepted Answer

In a competitive market, there are many sellers offering the same product, so none of them can influence the market price. If one producer tries to raise the price, consumers can simply switch to a different seller offering the same product at a lower price. This keeps prices in check and ensures that sellers have to compete on factors other than price, such as quality or convenience.

In a Competitive Market, No Single Producer Can Influence the Market