5
QuizMultiple Choice

Market Structures and Competition

Question 5 • * HSA 26-27 Economics

In pure competition, producers compete exclusively on the basis of

Answer
A
selling identical items.
B
advertising heavily to promote their good.
C
producing the unique features of their good.
D
focusing on maintaining a positive image.

Explanation

In pure competition, many producers sell identical or nearly identical products, so no producer can distinguish its good through unique features or image. Competition therefore centers on selling the same kind of item, rather than heavy advertising or product differentiation. The correct choice is selling identical items.

AI-written and checked against the verified answer.

Previous
Next