In a market characterized by too many sellers, what market structure is described?

In a market characterized by too many sellers, the appropriate market structure described is perfect competition. In perfect competition, a large number of firms sell identical or very similar products, and no single firm has significant market power to influence prices. This abundance of sellers means that each firm must accept the market price as given, leading to the conditions where competition is at its highest.

Characteristics of perfect competition include free entry and exit in the market, homogenous products, and perfect information among buyers and sellers. This leads to an efficient allocation of resources, where prices reflect the true cost of producing goods and services.

While imperfect competition involves some degree of market power due to differentiation among products or barriers to entry, it does not strictly define a market with many sellers selling the same product as perfectly competitive markets do. Thus, perfect competition is the best fit for a situation with too many sellers.