why is pure competition considered an unsustainable system?\n○ price differentiation is often too minimal to…

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

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

Answer

Brief Explanations:

En la competencia pura, hay muchos productores y pocos obstáculos para la entrada. Los productores son price - takers y para competir, reducen los precios. Si siguen bajando los precios, no pueden obtener ganancias a largo plazo, lo que hace que el sistema sea insostenible.

Answer:

Producers cannot make a profit if they keep dropping their prices.