Question

A seller in a competitive market can sell all he wants at the going price, so he has little reason to charge less. will lose all his customers to other sellers if he raises his price. considers the market price to be a "take it or leave it" price. All of the above are correct.

Answer 1

Answer: Option (d) is correct.

Explanation:

Correct option: All of the above are correct.

In a perfectly competitive market, there are large number of buyers and sellers. Price and demand of the commodities are determined by the market forces. All the firms in a competitive market are price taker.

Any single firm cannot influence the market price. If a single firm tries to increase their price by a small amount, will lose all of its product demand to other firms. This is because of the competition among the firms.  

Answer 2

All of the above are correct

In a competitive market, the demand and prices of goods and services are determined by the market forces. In a competitive market, many producers are competing with each other to produce the goods and services that the consumer needs.

Further Explanation

Everybody is involved in a competitive market; no single producer or consumer can dictate the market.

Some characteristics of a competitive market include:

• There are many producers and buyers
• Each firm in a competitive market produces a similar product
• Buyers and consumers have no barrier in entering or exiting a competitive market
• No individual can control the market
• There is also a perfect knowledge of prices

Farming is a very good example of a competitive market because there are many farmers and no farmers can dictate the market. No farmer can also influence the market price.

In a competitive market, farmers have no choice on price, they can only accept the price condition of the market. In other words, they can’t determine the price of their crop; they have to rely on the market forces.

There is always huge competition in a competitive market because the products are similar and no firm can determine its product price and they try to increase the price of their product, they will lose their customers.

LEARN MORE:

• A seller in a competitive market  https://brainly.com/question/13747322
• For a competitive market https://brainly.com/question/13811716

KEYWORDS:

• competitive market
• customers
• goods and services
• competition
• farmers