Pure competition occurs when a market has:
A) homogeneous (similar) products.
B) easy entry for new sellers.
C) many buyers and sellers.
D) informed buyers and sellers.
E) All of these alternatives are correct.

Question

Quizplus · Accepted Answer

Pure competition is a market situation that develops when a market has homogeneous (similar) products; there are many buyers and sellers who have full knowledge of the market; and there is ease of entry for buyers and sellers.

Pure Competition Occurs When a Market Has