What difference does it make to the market when we say that there are large number of sellers in a perfectly competitive market? Explain

What difference does it make to the market when we say that there are

1.	What difference does it make to the market when we say that there are large number of sellers in a perfectly competitive market? Explain
Answer» Solution : Very LARGE no. of buyers and sellers: The no. of sellers is so large that the share of each seller is insignificant in the TOTAL supply. Hence, an INDIVIDUAL seller cannot influence the market price. 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 prevails in the market.