In pure competition, producers compete exclusively on the basis ofA-sell identical items. B-advertise heavily to promote their good. C-product the unique features of their good. D-focus on maintaining a positive image.

Step 1: Define the Problem

Identify the key component of the question: Determine the basis of competition in a pure competition market structure.

Step 2: Break Down the Problem

Understand the characteristics of pure competition:

• Many sellers and buyers
• Homogeneous products
• Free entry and exit in the market
• Perfect information

Step 3: Apply Relevant Concepts

In a pure competition market, producers compete primarily by offering identical products at the lowest possible price, as there are no unique features or heavy advertising involved.

Step 4: Analysis, Verify and Summarize

• Option A: Sell identical items - aligns with the characteristics of pure competition.
• Option B: Advertise heavily - not typical in pure competition due to homogeneous products.
• Option C: Unique features - contradicts the homogeneous nature of products in pure competition.
• Option D: Focus on maintaining a positive image - not a primary competitive strategy in pure competition.

Final Answer

A - sell identical items.