A competitive market has many buyers and sellers, each with very little market power.

Question

Quizplus · Accepted Answer

In a competitive market, no single buyer or seller has enough market power to affect the price of the product or service being traded. The price is determined by the forces of supply and demand, with each participant in the market being a price taker rather than a price maker. Therefore, many buyers and sellers with little market power characterize a competitive market.

A Competitive Market Has Many Buyers and Sellers, Each with Very