Consumers don't care which supplier they buy from in a perfectly competitive market because:

Question

Quizplus · Accepted Answer

In a perfectly competitive market, all suppliers sell an identical product, therefore, consumers do not have a preference for one supplier over another since the output of each firm is the same. This is known as product homogeneity. In a perfect market, the prices of products are also determined by the market forces of supply and demand, and they reach equilibrium, meaning that the price is low enough that it reduces consumer preference to choose one supplier over another. Therefore, option C is false. Option B is also incorrect as consumers do have a choice regarding who they buy from in a perfectly competitive market.

Consumers Don't Care Which Supplier They Buy from in a Perfectly