Question

What is one drawback of pure competition compared to monopolies?

A. Pure competition allows one company to have too much
influence
B. Pure competition provides consumers with fewer economic
choices.
C. Pure competition makes it more difficult for new businesses to
enter a market
D. Pure competition spreads resources between many different
firms.

Answer 1

d

Step-by-step explanation:

Answer 2

D. Pure competition spreads resources between many different

firms.

Step-by-step explanation:

Pure competition is a market structure with many suppliers and many buyers. All the suppliers sell a homogeneous product. There is intense business competition among the suppliers. Other characteristics of pure competition include

• There are no dominant suppliers.
• There is ease of entry and exit into the market
• Suppliers/firms are price takers.

In pure competition, resources are shared among the many competing firms in the industry, unlike in a monopoly that has only a single supplier. Resources include raw materials and profits.