Read the following statements - Assertion (A) and Reason (R):
Assertion (A): In a perfectly competitive market, no individual buyer or seller can influence the market by their size.
Reason (R): There are a large number of buyers and sellers in a perfectly competitive market.
From the given alternatives choose the correct one:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Assertion (A): In a perfectly competitive market, no individual buyer or seller can influence the market by their size. — True. Each buyer and each seller is very small compared with the whole market.
Reason (R): There are a large number of buyers and sellers in a perfectly competitive market. — True. This is the first defining feature of perfect competition.
Why R explains A?
When there are very many buyers and sellers, each one is a tiny part of the market. So no single buyer or seller is big enough to change the market. R is the cause of A.
NCERT (2026-27): “4.1 Perfect Competition: Defining Features … The existence of a large number of buyers and sellers means that each individual buyer and seller is very small compared to the size of the market. This means that no individual buyer or seller can influence the market by their size. Homogenous products further mean that the product of each firm is identical. …” |