When competitive firms do not have influence over the price of their product, all of the following are true EXCEPT which condition?
A) The product they produce is similar across sellers.
B) The product appeals more strongly to some consumers than others.
C) There are many potential sellers.
D) There are many buyers and sellers, each small relative to the total market.

Question

Quizplus · Accepted Answer

When firms do not have influence over the price of their product, it means that the market is perfectly competitive. Under such conditions, all firms produce a homogenous product and there are many potential sellers and buyers. Option B states that the product appeals more strongly to some consumers than others, which is not true in a perfectly competitive market where all consumers have the same preferences for the product. Hence, option B is the exception.

When Competitive Firms Do Not Have Influence Over the Price