If every firm in a market is a price taker,then which of the following is true?

Question

Quizplus · Accepted Answer

If every firm in a market is a price taker, it means that no individual firm has the power to influence the price of the product. This usually occurs in markets where there are numerous sellers, giving consumers a wide range of choices and making it difficult for any one firm to control the market price. Therefore, option A, which states that there are numerous sellers in the market, is the correct answer. The other options are not necessarily true in a market where every firm is a price taker.

If Every Firm in a Market Is a Price Taker,then