Which of the Following Correctly Explains Why Sellers in a Perfectly

question 87

Multiple Choice

Which of the following correctly explains why sellers in a perfectly competitive market are price takers?

• A) There are few sellers, and so they have the power to take whatever price they want.
• B) There are many sellers, and so the market process generates an equilibrium price that cannot be influenced by any one seller. Thus they have no choice but to take the price generated by the market process.
• C) Sellers in a competitive market have the power to influence price by colluding with one another and using quotas to limit overall market output and thus raise price.
• D) Individual buyers in a competitive market have the power to influence price, and thus can impose prices and other conditions on powerless sellers.

---

Definitions:

Personal Attribution

The process of attributing one's own behaviors or the behaviors of others to personal characteristics or dispositions.

Situational Attribution

The process of ascribing behavior to external factors, circumstances, or the environment.

Just World Hypothesis

The Just World Hypothesis is the belief that the world is a fair place and that people get what they deserve.

Conformity

The process of adjusting one's behavior or thinking to match those of other people or a group standard.