why is pure competition considered an unsustainable system?\no price differentiation is often too minimal to…

why is pure competition considered an unsustainable system?\no price differentiation is often too minimal to matter.\no few barriers exist to entry, meaning that the market inevitably floods.\no consumers cannot distinguish between products.\no producers cannot make a profit if they keep dropping their prices.

why is pure competition considered an unsustainable system?\no price differentiation is often too minimal to matter.\no few barriers exist to entry, meaning that the market inevitably floods.\no consumers cannot distinguish between products.\no producers cannot make a profit if they keep dropping their prices.

Answer

Brief Explanations:

In pure - competition, many firms produce identical products. With low entry barriers, new firms enter easily, increasing supply. Producers then have to lower prices to compete, squeezing profit margins. Eventually, producers may not be able to make a profit.

Answer:

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