Which of the following statements applies to a purely competitive producer?
A)It will not advertise its product.
B)In long-run equilibrium, it will earn an economic profit.
C)Its product will have a brand name that elicits customer loyalty.
D)Its product is slightly different from those of its competitors.

Question

Quizplus · Accepted Answer

In a purely competitive market, producers sell products that are essentially identical to those of other producers, eliminating the need for advertising to differentiate products. They also operate under the condition that, in the long-run equilibrium, they earn normal profit (zero economic profit) due to free entry and exit in the market, making options B, C, and D incorrect.

Which of the Following Statements Applies to a Purely Competitive