If a firm sells its output on a market that is characterized by many sellers and many buyers and perfect resource mobility, then the firm is

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Quizplus · Accepted Answer

The characteristics described—many sellers and buyers, along with perfect resource mobility—define a perfectly competitive market. In such a market, no single firm can influence the market price because of the high level of competition and the homogeneous nature of the product offered.

If a Firm Sells Its Output on a Market That