The large number of firms producing the same commodity ensure that the individual firm has no control over
A)Price of the commodity
B)The quantity of the commodity
C)Both of the above
D)None of the above

Question

Quizplus · Accepted Answer

In a market with a large number of firms producing the same commodity, it is characteristic of perfect competition, where individual firms are price takers and have no control over the market price or the quantity of the commodity they produce. The market price is determined by the overall supply and demand, and firms must accept this price.

The Large Number of Firms Producing the Same Commodity Ensure