Question

Pure competition is a theoretical ____________________ that requires three conditions: very large numbers, identical products, and freedom of entry and exit.

Answer 1

Answer: Market structure

Explanation:

 The market structure is one of the concept that helps in defining the various types organizational characteristics and the function of the market.

The market structure basically focuses on the main factors that affect the pricing of the product and the competition ion the market. There are three types of market structure are as follows:

• Perfect competition
• Buyer's control
• Imperfect competition

According to the given question, the pure competition is one of the component of the market structure as it helps in determine the actual market share, identical products and the freedom in the existing industries.    Therefore, Market structure is the correct answer.