Question

why is pure competition considered an unsustainable system?○ price differentiation is often too minimal to matter○ few barriers exist to entry, meaning that the market inevitably floods○ consumers cannot distinguish between products.○ producers cannot make a profit if they keep dropping their prices

Explanation:

Pure competition has homogeneous products, so firms compete by cutting prices. If prices drop below production costs, producers cannot sustain profits, making the system unsustainable. The other options describe features of pure competition but do not explain its unsustainability: minimal price differentiation is a trait, low entry barriers lead to market saturation but not direct unsustainability, and product homogeneity is a defining characteristic, not a sustainability issue.

Answer:

Producers cannot make a profit if they keep dropping their prices