In a perfectly competitive market,at the market price,

Question

Quizplus · Accepted Answer

In a perfectly competitive market, there is no market power for either buyers or sellers, meaning that they are price-takers. This implies that the market price is determined by the intersection of the supply and demand curves, where the quantity demanded equals the quantity supplied. At this price, buyers can buy all they want (since the market is characterized by homogeneous products and perfect information), and sellers can sell all they want (since there are no barriers to entry or exit in the market). Therefore, the correct answer is D.

In a Perfectly Competitive Market,at the Market Price