Which characteristic would best be associated with pure competition?

Question

Quizplus · Accepted Answer

Pure competition is characterized by a large number of small firms, all selling a homogenous product, and no single producer can influence the market price. Therefore, firms in pure competition are price takers, meaning they cannot set the product price but must accept the prevailing market price. Option A is incorrect since pure competition has many small firms, and option D is wrong because homogenous products are sold, no product differentiation. Option C isn't correct since nonprice competition involves a company promoting its products' features, advantages, and benefits, which is also absent in pure competition.

Which Characteristic Would Best Be Associated with Pure Competition