In Lima,Peru,20 stores specialising 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 many sellers offer identical products, and no single seller can influence the market price. The presence of 20 stores selling the same quality and brand of wheat products on one street, with the inability of an individual seller to charge more without losing business, illustrates a market where competition is based purely on price, a hallmark of pure competition.

In Lima,Peru,20 Stores Specialising in Selling the Same Quality and Brand