A large number of sellers all selling an identical product implies which of the following?
A) market chaos
B) the inability of any seller to change the price of the product
C) large losses incurred by all sellers
D) horizontal market supply curves
E) vertical market supply curves

Question

Quizplus · Accepted Answer

In a market with a large number of sellers all selling an identical product, no single seller has enough market power to influence the price of the product. This is a characteristic of perfect competition, where the price is determined by the overall supply and demand in the market, and individual sellers must accept this market price.

A Large Number of Sellers All Selling an Identical Product