Which market structure involves many sellers producing identical products?

The correct answer is based on the characteristics of market structures. In pure competition, there are numerous sellers who produce identical (or homogeneous) products. This means that no single seller can influence the market price because all products are essentially the same, leading to a highly competitive environment.

In pure competition, consumers have many options to choose from, and the presence of many sellers ensures that the market is open and has minimal barriers to entry. Since products are identical, sellers are price takers and must accept the market price as given.

Monopolistic competition involves many sellers, but their products are differentiated, which gives them some price-setting power. Oligopoly consists of a few dominant firms that may sell similar or differentiated products. Monopoly, on the other hand, is characterized by a single seller in the market, which means there is no competition at all.

Understanding these distinctions helps clarify why pure competition is the market structure where many sellers produce identical products.