A firm may find itself in--or moving toward--pure competition because:
A) customers see the firm's product as having close substitutes.
B) a firm with a unique product has no choice.
C) customers don't have much information about competing suppliers.
D) when the number of competitors is small, they usually make similar decisions.
E) None of the above.

Question

Quizplus · Accepted Answer

In pure competition, products are seen as having close substitutes, leading to many firms competing in the market.

A Firm May Find Itself In--Or Moving Toward--Pure Competition Because