Both individual buyers and sellers in perfect competition

Question

Quizplus · Accepted Answer

In perfect competition, no individual buyer or seller has the power to influence the market price by their own individual actions. They have to take the market price as a given, which means that the market price is determined by the forces of supply and demand. Therefore, option C is the best choice. Options A and B are incorrect because they suggest that individual buyers and sellers have the power to influence the market price, which is not the case in perfect competition. Option D is also incorrect because the market price is not dictated by the government in perfect competition.

Both Individual Buyers and Sellers in Perfect Competition