D is corrent. In a purely competitive market, there are a very large number of firms who produce a standardized product.
A is incorrect. It is in an oligopolistic market that there are a small number of sellers who make interdependent pricing and output decisions. In a purely competitive market, individual firms are price takers.
B is incorrect. It is in a monopolistic market that there is one sole seller of a product or service so that the firm is the industry.
C is incorrect. It is in a monopolistically competitive market that a relatively large number of sellers produce differentiated products. In a purely competitive market, the product is standardized.
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