In an economy where firms in most industries are purely competitive firms,individual firms in each industry would produce ________ products and have a ________ share of industry output.
A)differentiated; large
B)differentiated; small
C)standardized; large
D)standardized; small

Question

Quizplus · Accepted Answer

In a purely competitive market, all firms produce standardized products and have a small market share as they have no control over the price and must accept the market price. Differentiated products are typically associated with monopolistic competition or oligopoly markets.

In an Economy Where Firms in Most Industries Are Purely