In a _____________ situation, competitors offer very similar products which customers see as close substitutes, and managers just compete with lower and lower prices as profit margins shrink.
A) capitalistic competition
B) pure competition
C) monopoly
D) monopolistic competition
E) collectivist competition

Question

Quizplus · Accepted Answer

In a pure competition situation, there are many competitors who offer virtually identical products, leading to competition primarily on price because consumers see the products as close substitutes. This environment tends to drive down prices and reduce profit margins as businesses strive to attract customers by offering the lowest possible price.

In a _____________ Situation, Competitors Offer Very Similar Products Which