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:

Resource Depletion

The consumption of finite or non-renewable natural resources, leading to a reduction in their availability over time.

Market Economy

An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses.

Relative to Demand

This refers to how the availability or desire for a product or service is influenced by consumer demand.

Price Controls

Government-imposed limitations on the prices that can be charged for goods and services in a market.