Respuesta :
Answer: True, The market for wheat does exhibit the two primary characteristics identical good and large number of buyers and seller.
Explanation: Perfectly competitive market is governed by the following characteristics,
a. Identical/homogeneous goods
b. Large number of buyers and sellers
c. Free entry and exit
d. Perfect information
Therefore, the above statement is true that in a perfectly competitive market, all producers sell identical goods or services. Additionally, there are many buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price takers.
The market for wheat does exhibit the two primary characteristics identical good and large number of buyers and seller each has no impact on the price of wheat determined by the market.
The given statement is true.
Further Explanation:
Perfectly competitive market:
A perfectly competitive market is known as the market where a large number of sellers sell the homogeneous product to a large number of buyers. All the firms sell an identical product thus, the margin earned by the firms is very less. It is considered that the buyer has the perfect information about the product and market.
Price control in a perfectly competitive market:
The number of sellers in the perfectly competitive market is very high, and all the sellers sell identical products. Therefore, they do not have control over the price. In a perfectly competitive market, the price is determined through the demand and supply of goods in the market. The price is determined at the equilibrium price where the demand meets the supply. Thus, the buyer does not have control over the price in a perfectly competitive market. The buyer and seller accept the equilibrium price.
Thus, the given statement is true.
Learn More:
1. Learn more about the product leadership
https://brainly.com/question/6610513
2. Learn more about the demand and supply
https://brainly.com/question/5471118
3. Learn more about the supply
https://brainly.com/question/5290954
Answer Details:
Grade: Middle school
Chapter: Types of market
Subject: Economics
Keywords: In, perfectly, competitive, market, producers, sell, identical, goods, services, Additionally, many buyers, sellers, Because, two, characteristics, both buyers and sellers in perfectly competitive, markets price-takers.
