Which of the following conditions is present for all sellers in a perfectly competitive market?
A)All sellers have an equal and high level of market power.
B)The product price varies across the sellers.
C)The number of sellers is small.
D)All sellers are selling identical products.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, all sellers offer and sell identical products. This means that consumers see no difference between the products of different sellers and will simply choose the lowest-priced option. Option A is incorrect because in a perfectly competitive market, no seller has market power as they cannot influence the price. Option B is also incorrect because in a perfectly competitive market, all sellers offer the same price for the same product, and Option C is incorrect because a perfectly competitive market has a large number of sellers, not a small number.

Which of the Following Conditions Is Present for All Sellers