In a purely competitive industry, each firm
A)determines its own price.
B)produces a differentiated product.
C)can easily enter or exit the industry.
D)engages in various forms of nonprice competition.

Question

Quizplus · Accepted Answer

In a purely competitive industry, firms face no barriers to entry or exit, making it easy for new firms to enter the market or for existing firms to leave if they choose to. This characteristic ensures a high level of competition and efficiency within the market.

In a Purely Competitive Industry, Each Firm