The market structure that serves as the ideal against which the performance of firms in all other market structures is judged is:
A) oligopoly.
B) monopoly.
C) pure competition.
D) monopolistic competition.

Question

Quizplus · Accepted Answer

Pure competition is considered the ideal market structure because it is characterized by a large number of small firms, freedom of entry and exit, and a homogeneous product, leading to maximum efficiency and welfare.

The Market Structure That Serves as the Ideal Against Which