Which of the following exemplifies a pure competitive market?
A) a market where many buyers and sellers trade over a range of prices rather than a single market price
B) a market where a single firm controls the larger fraction of the market share
C) a market where a few powerful firms control the larger fraction of the market share
D) a market characterized by only a few large sellers
E) a market where many buyers and sellers trade in a uniform commodity

Question

Quizplus · Accepted Answer

A pure competitive market is characterized by many buyers and sellers trading in a uniform commodity, with no single entity having significant control over the market price. Options A, B, C, and D all describe market structures with some degree of market power or control, whereas option E describes a pure competitive market.

Which of the Following Exemplifies a Pure Competitive Market