What is a key feature of pure competition?

In a pure competition market structure, a key feature is that multiple sellers offer identical goods. This means that no single producer can influence the market price, as each seller provides a product that is indistinguishable from others in the market. As a result, consumers have the freedom to switch from one seller to another without any change in product quality, fostering a competitive environment where prices tend to stabilize at a level determined by supply and demand.

The absence of product differentiation ensures that competition is primarily based on price, and firms must operate efficiently to maintain their market share. This characteristic supports the fluid nature of the market, allowing for easy entry and exit, which is also typical in pure competition scenarios.

The other options reflect characteristics of different market structures: unique and differentiated products suggest monopolistic competition; a single seller controlling the market indicates a monopoly; and high barriers to entry are more aligned with oligopolies or monopolies, where new firms encounter significant obstacles to entering the market.