In which competitive structure are firms unable to create a long-run differential advantage?
A) Oligopoly
B) Monopolistic competition
C) Monopoly
D) Pure competition

Question

Quizplus · Accepted Answer

In a pure competition market structure, there are many sellers offering identical products, making it impossible for any single firm to create a long-run differential advantage. This is because consumers can easily switch from one supplier to another with no cost or difference in product quality.

In Which Competitive Structure Are Firms Unable to Create a Long-Run