The competitive market situation in which many sellers follow the market price for identical,commodity products is referred to as a(n)
A)pure monopoly.
B)oligopoly.
C)monopolistic competition.
D)pure competition.
E)oligopolistic competition.

Question

Quizplus · Accepted Answer

Pure competition is characterized by a large number of small firms selling identical products or commodities, with no single firm having control over the market price. In this market structure, firms are price takers, meaning they have to accept the market price, and they can freely enter or exit the market.

The Competitive Market Situation in Which Many Sellers Follow the Market