Pure competition is the competitive situation where
A)many sellers follow market price for identical, commodity products.
B)one seller sets the price for a unique product.
C)few sellers are sensitive to one another's prices.
D)many sellers compete on nonprice factors.
E)one or few sellers compete solely on nonprice factors.

Question

Quizplus · Accepted Answer

Pure competition is characterized by many sellers offering identical, commodity products, and they follow the market price as they have no control over it. It is a price-taker market where sellers are price-sensitive and cannot influence the market price. This market structure is sometimes also called perfect competition. Therefore, the best choice is A.

Pure Competition Is the Competitive Situation Where