In Lima, Peru, 20 stores specializing in selling the same quality and brand of wheat products are located on one street. An individual seller cannot charge more than the going price without the risk of losing business to the other stores. This is an example of what type of market?
A)pure competition
B)monopolistic competition
C)oligopolistic competition
D)pure monopoly
E)socialist

Question

Quizplus · Accepted Answer

This scenario is an example of pure competition, where there are many sellers offering identical products, and no single seller can influence the market price.

In Lima, Peru, 20 Stores Specializing in Selling the Same