Assume Lianna buys coffee beans in a competitive market. It follows that:

• A. Lianna cannot influence the price of coffee beans and must accept the market price.
• B. Lianna faces different prices for coffee beans depending on the seller.
• C. Lianna can negotiate a lower price for coffee beans due to her bargaining power.
• D. Lianna is the only buyer in the market and sets the price for coffee beans.

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the characteristics of a competitive market. In a perfectly competitive market, there are many buyers and sellers, and no single buyer or seller can influence the market price.
2. Step 2: Recognize that in such a market, the price is determined by the overall market supply and demand, not by individual participants. Therefore, each buyer, including Lianna, is a price taker.
3. Step 3: Analyze the options given: if Lianna could influence the price or negotiate different prices, it would imply market power, which contradicts the competitive market assumption.
4. Step 4: Conclude that Lianna must accept the market price for coffee beans because she cannot influence it or negotiate different prices.
5. Step 5: Summarize that the correct statement is that Lianna cannot influence the price of coffee beans and must accept the market price.