Which of the following is true with regard to pure competition?
A) Under pure competition, no single buyer or seller has much effect on the going market price.
B) In a purely competitive market, marketing research is of utmost importance.
C) In a purely competitive market, product development is the focus of most firms.
D) Under pure competition, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.
E) Under pure competition, the market consists of only a few large sellers.

Question

Quizplus · Accepted Answer

Pure competition is characterized by a large number of buyers and sellers who have no significant impact on the pricing of products or services. Therefore, no single buyer or seller can influence the market price.

Answer: D 
 Under perfect competition, many buyers and sellers participate in a market, and all products are identical. Buyers and sellers negotiate prices without any intervention. The price of goods is determined by supply and demand forces in the market, and the market consists of trading over a range of prices rather than a single market price.

Which of the Following Is True with Regard to Pure