Explain the implicaiton of large number of buyers in a perfectly compe

1.	Explain the implicaiton of large number of buyers in a perfectly competitive market.
Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> : The no. of sellers is so large that the share of each seller is <a href="https://interviewquestions.tuteehub.com/tag/insignificant-1045929" style="font-weight:bold;" target="_blank" title="Click to know more about INSIGNIFICANT">INSIGNIFICANT</a> in the <a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> supply. Hence, an individual seller cannot influence the market <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a>. Similarly, a single buyer's share in total purchase is so insignificant because of their large no. that an individual buyer cannot influence the market price. Under such conditions, price of a commodity is determined by the market forces of demand and supply and each buyer and seller has to accept the same price. As a result, uniform price <a href="https://interviewquestions.tuteehub.com/tag/prevails-2950895" style="font-weight:bold;" target="_blank" title="Click to know more about PREVAILS">PREVAILS</a> in the market.</body></html>

Explain the implicaiton of large number of buyers in a perfectly competitive market.