In Viña del Mar, Chile, a large number of shops specialize in selling the same quality of seafood products along the beach frequented by tourists. No individual shop dares charge more than the going price without fearing loss of business to other shops. This exemplifies ________.
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) pure monopoly
E) the dominant firm model

Question

Quizplus · Accepted Answer

This situation exemplifies pure competition, where many sellers offer identical products, and no single seller can influence the market price.

In Viña Del Mar, Chile, a Large Number of Shops