Multiple Choice
In the context of competitive markets, what is the primary goal of mass customization?
32
views
3. The Market Forces of Supply and Demand
Competitive Markets
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
In pure competition, producers compete exclusively on the basis of:
A
product differentiation
B
brand loyalty
C
advertising
D
price
Verified step by step guidance1
Understand the characteristics of pure competition: many sellers, identical products, and free entry and exit in the market.
Recognize that in pure competition, products are homogeneous, meaning there is no product differentiation among sellers.
Note that because products are identical, consumers have no preference based on brand loyalty or advertising.
Conclude that the only factor producers can compete on is the price of the product.
Therefore, in pure competition, producers compete exclusively on the basis of price.
7:03mWatch next
Master Introduction to Supply and Demand with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Competitive Markets practice set
Problem sets built by lead tutorsExpert video explanations