Which of the following is a feature of a competitive market?

In a competitive market, one of the defining features is the presence of many buyers and sellers, where no single entity has the ability to control prices. This leads to the concept of price taking, where individual firms accept the market price as given and adjust their output accordingly. The interactions among a multitude of buyers and sellers create a dynamic environment where competition drives efficiency and innovation.

In addition, because there are so many participants, the decisions of any one buyer or seller do not significantly affect the overall market supply or demand. Thus, prices remain stable and reflect the collective behavior of all market players. This feature is critical for ensuring resource allocation aligns with consumer preferences and that no individual participant can manipulate the market for personal gain.

In contrast, price controls and regulations may exist in various market structures but are not a characteristic of a competitive market. High entry barriers for new firms signify a monopoly or oligopoly rather than competition. Lastly, homogeneous products offered by a single seller describe a market with limited competition, thus reinforcing why the presence of many participants and their independence is key to defining a truly competitive market.