When there is a large number of buyers and sellers in a market, _____.
A) there will be perfect information in the market
B) an individual seller or buyer cannot affect the market price
C) all the sellers will produce differentiated products
D) there are barriers to the entry and exit of ﬁrms

Question

Quizplus · Accepted Answer

In a market with a large number of buyers and sellers, no single buyer or seller has enough power to influence the market price, leading to a situation where prices are determined by the overall supply and demand in the market. This is characteristic of perfect competition.

When There Is a Large Number of Buyers and Sellers