With a _____ number of sellers in a market, _____ market power tends to exist in the market.

Question

Quizplus · Accepted Answer

With a smaller number of sellers in a market, each seller has more market power as there are fewer alternatives for buyers to choose from. Therefore, they have the ability to influence the price and output in the market. When there are more sellers, each seller has less market power as there are more alternatives for buyers to choose from. This leads to more competition and lower market power.

With a _____ Number of Sellers in a Market, _____

With a _ Number of Sellers in a Market, _