GCEEconomicsMarket Structures2021

Which of the following best describes a perfectly competitive market?

AA few sellers dominate the market and influence price
BA single seller controls the supply of a unique product
CMany buyers and sellers trade a homogeneous product at a market-determined priceCORRECT
DSellers differentiate their products through advertising and branding
AI
Toaster Teacher
Why the answer is C, and why the others tempt you.
In a perfectly competitive market, there are many buyers and sellers dealing in identical (homogeneous) products, and no single participant can influence the market price. Price is determined by the forces of demand and supply. Options A and D describe oligopoly and monopolistic competition respectively, while B describes a monopoly.
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