If competitive market circumstances are such that there is almost no price competition,no product differentiation,and the only advertising that informs prospects that the product is available,then ____ must exist in this industry.
A)a pure monopoly
B)an oligopoly
C)monopolistic competition
D)pure competition

Question

Quizplus · Accepted Answer

Pure competition is characterized by a large number of small firms producing homogeneous products, and there is no product differentiation or price competition. The only way firms can attract customers is through advertising that informs prospects that the product is available. Therefore, if competitive market circumstances lack price competition and product differentiation and rely solely on advertising, then it must be a pure competition market.

If Competitive Market Circumstances Are Such That There Is Almost