Question

In pure competition, producers compete exclusively on the basis of sell identical items. advertise heavily to promote their good. product the unique features of their good. focus on maintaining a positive image.

Answer 1

Characteristics of a pure competition :

1.) Sellers sell identical products which removes the option of a seller to sell something different or better.

2.) All sellers are equal.

3.) New companies can easily enter the market.

4.) Price is determined by what the consumer is willing to pay.

From the information above, the correct answer is :

Sellers should focus on maintaining a good image.

Answer 2

This situation is normally in a perfect competition market structure where there are many buyers and many sellers, due to stiff competition of market products the demand and the supply of goods increases simultaneously, every seller strives to make a sell, in the process the prices of the commodities are reduced to attract more customers into the business.

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