When a firm has little ability to influence market prices, it is said to be in what kind of a market?

Question

Quizplus · Accepted Answer

In a competitive market, firms have little ability to influence market prices as there are many other firms offering similar products/services. In such a market, firms must compete based on factors such as quality, brand recognition, and customer service to differentiate themselves and attract customers. Therefore, option B is the correct answer. Option A (strategic market) is not a commonly used terminology, option C (power market) refers to a market dominated by a few large firms with significant market power, and option D (thin market) refers to a market with low trading volume and liquidity.

When a Firm Has Little Ability to Influence Market Prices