Because there are only a few manufacturers of computer chips, the product is sold in a purely competitive market.

Question

Quizplus · Accepted Answer

A purely competitive market exists when there are a large number of small firms producing an identical product, with no significant barriers to entry or exit. In the case of computer chips, there are only a few major manufacturers, such as Intel and AMD. Therefore, this market is not purely competitive, but rather oligopolistic.

Because There Are Only a Few Manufacturers of Computer Chips