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

question 92

Multiple Choice

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

• 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:

Disposable Income

Income available to households after accounting for taxes and social security charges, available for spending or saving.

Gross Domestic Product

The total market value of all final goods and services produced within a country in a specific time period.

Aggregate Expenditure

This is the total spending on final goods and services in an economy, including consumption, investment, government purchases, and net exports.

Disposable Income

The budget households have for expenses and savings after income tax deductions.