What type of market features producers who are unable to influence prices?

A perfectly competitive market is characterized by many producers, each of whom sells a homogeneous product. In this type of market, individual producers have no power to influence the market price; instead, they are price takers. This means that the price is determined by the overall market demand and supply dynamics.

All firms in a perfectly competitive market face a perfectly elastic demand curve at the market price, which indicates that if any individual firm raises its price even slightly above the market price, it will lose all its customers to competitors offering a lower price. Consequently, the efficiency and large number of participants prevent individual firms from manipulating prices or gaining market power.

In contrast, other market structures, such as monopolistic markets and oligopolies, involve fewer producers who can exert influence over prices due to the limited competition or differentiated products. A monopsonistic market, on the other hand, features a single buyer facing multiple sellers, which primarily affects the pricing power of the sellers instead of the producers' ability to influence prices in the same manner as in perfect competition.