Which of the following is true of a pure competitive market?
A) A single seller has a major effect on the current and future market price.
B) Companies spend significantly on marketing research and product development.
C) The advertising budget of companies is usually huge.
D) Sellers try to develop differentiated offers for different customer segments.
E) Sellers spend little time on marketing strategy.

Question

Quizplus · Accepted Answer

In a pure competitive market, sellers are price takers and do not have the ability to influence the price. Therefore, they do not spend significant time or resources on marketing strategy, as their products are homogeneous and interchangeable with those of other sellers in the market.

Which of the Following Is True of a Pure Competitive