competitive market circumstances are such that there is no price competition,no product differentiation,and the purpose of advertising is to increase demand for the product class,then __________ must exist in the industry.
A) an oligopoly
B) monopolistic competition
C) a pure monopoly
D) pure competition
E) oligopolistic competition

Question

Quizplus · Accepted Answer

A pure monopoly exists when there is only one seller in the market and no close substitutes for the product. In this case, the firm has the power to set the price and output level, and there is no price competition or product differentiation. The purpose of advertising in this case is to increase demand for the product class, which will benefit all firms in the industry.

Competitive Market Circumstances Are Such That There Is No Price