All market participants are price takers that have no influence over prices in markets that feature

Question

Quizplus · Accepted Answer

When there are numerous buyers and numerous sellers, no single participant has enough market power to influence prices. Therefore, all participants are price takers. In markets with only a few buyers and a few sellers, or where there are numerous sellers but only a few buyers or numerous buyers but only a few sellers, some participants may have enough market power to influence prices and therefore are not strictly price takers.

All Market Participants Are Price Takers That Have No Influence