Pure competition occurs when a market has:
A) homogeneous (similar) products.
B) easy entry for new sellers.
C) many buyers and sellers.
D) informed buyers and sellers.
E) All of the above.

Question

Quizplus · Accepted Answer

Pure competition occurs when all of the above conditions are present in the market. Homogeneous products ensure that buyers do not have a preference for one seller over another, easy entry for new sellers keeps the market competitive, many buyers and sellers prevent monopolies, and informed buyers and sellers ensure that market forces operate efficiently.

Pure Competition Occurs When a Market Has