A very large number of small sellers who sell identical products imply
A)a multitude of vastly different selling prices.
B)a downward sloping demand curve for each seller's product.
C)the inability of one seller to influence price.
D)chaos in the market.

Question

Quizplus · Accepted Answer

When there are a very large number of small sellers who sell identical products, no single seller is able to influence the price. The price is determined by the market forces of supply and demand, and each seller must accept the prevailing market price. Therefore, there is no upward or downward sloping demand curve for each seller's product, nor is there chaos in the market. However, there may be a multitude of different selling prices depending upon the specific circumstances of each seller. Nevertheless, the best choice is C because it is the most accurate description of the situation.

A Very Large Number of Small Sellers Who Sell Identical