2
QuizMultiple Choice

Case Study: Starting a Business — Unit test

Question 2 of 15 • 26-27 Ignite Economics-KY-Economics

Why is pure competition considered an unsustainable system?

Answer
A
Price differentiation is often too minimal to matter.
B
Few barriers exist to entry, meaning that the market inevitably floods.
C
Consumers cannot distinguish between products.
D
Producers cannot make a profit if they keep dropping their prices.
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