In Vin del Mar,Chile,there are a dozen stores specializing in selling the same quality of seafood products on one street.An individual store dare not charge more than the going price without the risk of losing business to the other stores that are selling the fish at a common price.This is an example of what type of market?
A)oligopolistic competition
B)socialist
C)pure competition
D)pure monopoly
E)monopolistic competition

Question

Quizplus · Accepted Answer

This is an example of pure competition, where many small firms offer the same product at a similar price, and cannot charge more without losing business to competitors. There is no one dominant firm or seller in the market. Oligopolistic competition would involve a few large firms dominating the market, while monopolistic competition involves differentiation of products and some control over pricing. Socialism and pure monopoly are not relevant to this scenario.

In Vin Del Mar,Chile,there Are a Dozen Stores Specializing in Selling