In a Competitive Market, No Single Producer Can Influence the Market

question 458

Multiple Choice

In a competitive market, no single producer can influence the market price because

• A)many other sellers are offering a product that is essentially identical.
• B)consumers have more influence over the market price than producers do.
• C)government intervention prevents firms from influencing price.
• D)producers agree not to change the price.

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Definitions:

Postbox Rule

The Postbox Rule, also known as the mailbox rule, is a legal principle that determines the moment at which an offer is considered accepted, typically the moment the acceptance is sent.

Binding Contract

A legal agreement between two or more parties that is enforceable by law.

Entores Ltd.

A landmark case in contract law that established the principle that an acceptance of an offer becomes effective when communicated.

Telex

A communication network system used to send text messages through a network of teleprinters, historically significant before the advent of modern digital communications.