Why are both buyers and sellers price takers in a perfectly competitive market?
A) Because the price is determined by government intervention and dictated to buyers and sellers.
B) Because each buyer and seller knows it is illegal to conspire to affect price.
C) Because both buyers and sellers in a perfectly competitive market are concerned for the welfare of others.
D) Because each buyer and seller is too small relative to others to independently affect the market price.
Correct Answer:
Verified
Q2: What is implied by a very large
Q4: Which of the following is not a
Q5: Which of the following is a characteristic
Q5: By what is the price of a
Q8: The demand curve for an individual seller's
Q10: Which of the following is the best
Q12: Suppose the equilibrium price in a perfectly
Q17: An individual seller in perfect competition will
Q18: Assume the market for organic produce sold
Q18: Which of the following is a characteristic
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents