When there are large numbers of buyers and sellers, then

Question

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Large numbers of buyers and sellers create a competitive market, where no single buyer or seller has the power to influence the market price. This is known as the principle of perfect competition. Choice A is incorrect because products sold under perfect competition may not necessarily look identical, although they are close substitutes. Choice B is not necessarily true because firms may not always be able to move labor and capital easily. Choice D may be true, but it is not the defining feature of perfect competition.

When There Are Large Numbers of Buyers and Sellers, Then