The large number of firms producing the same commodity ensure that the individual firm has no control over
A)Price of the commodity
B)The quantity of the commodity
C)Both of the above
D)None of the above

Question

Quizplus · Accepted Answer

In a market with a large number of firms producing the same commodity, it is typically a perfectly competitive market. In such a market, individual firms are price takers and have no control over the price of the commodity or the market quantity. The price is determined by the overall market supply and demand.

The Large Number of Firms Producing the Same Commodity Ensure