What level of market power exists for sellers in a perfectly competitive market?
A)The level of market power varies widely across the sellers in the market.
B)All sellers have an equal and high level of market power.
C)All sellers lack market power.
D)The largest seller in the market holds all market power.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, there are a large number of buyers and sellers, homogeneous products, free entry and exit, perfect information, and no barriers to trade. As a result, no individual seller has the ability to influence prices or control the market. Therefore, all sellers lack market power.

What Level of Market Power Exists for Sellers in a Perfectly