What must a perfect competition market have to avoid total control over prices by one group?

A perfect competition market is characterized by the presence of many buyers and sellers, which ensures that no single entity can exert significant control over the market price. This abundance of participants means that if any seller attempts to raise prices above the market equilibrium, consumers can simply switch to other sellers offering identical products at lower prices. Similarly, if buyers form a group to demand lower prices, the oversupply will cause sellers to lower their prices to remain competitive.

This competitive environment facilitates price determination through supply and demand dynamics rather than through the power of any single participant. The other options do not contribute to maintaining this balance: high barriers to entry would limit competition, strict regulations could interfere with free market dynamics, and limited product offerings would enable sellers to exert more control over pricing since customers would have fewer alternatives. Thus, having multiple buyers and sellers is essential for ensuring that the market remains competitive and that no single group can dominate price-setting.