Which of the following statements applies to a purely competitive producer?
A) It will not advertise its product.
B) In long-run equilibrium it will earn an economic profit.
C) Its product will have a brand name.
D) Its product is slightly different from those of its competitors.

Question

Quizplus · Accepted Answer

A purely competitive producer is a price taker, meaning it has no control over the market price and must accept the going market price. Therefore, advertising would not affect its sales and would be an unnecessary expense.

Which of the Following Statements Applies to a Purely Competitive