Most product-markets head toward ______ over the long run.
A) pure competition
B) monopolistic competition
C) capitalistic competition
D) monopoly
E) collectivism

Question

Quizplus · Accepted Answer

Pure competition is a market structure in which there are many buyers and sellers, and each firm produces an identical product. In the long run, most product-markets head toward pure competition because firms that are able to produce at a lower cost will drive out firms that are unable to do so.

Most Product-Markets Head Toward ______ Over the Long Run