Title: Pure Competition And Perfect Competition - Academike
Headings: Pure Competition And Perfect Competition
Pure Competition And Perfect Competition
By Sumit Kumar Suman, CNLU
INTRODUCTION
Pure competition
Meaning:
Pure competition involves-
DEFINITION
CHARACTERISTICS
Large number of buyers and sellers:
Homogenous products:
Free entry and exit from industry:
The firm in the pure competition:
Profit maximizing in the short run:
Short run profits using TR and TC
Short Run Profits using Unit Cost and Revenue
Loss Minimization and Shutdown in the Short run
Profits in the Long Run Pure Competition
PERFECT COMPETITION
Meaning:
Definition:
Features:
Profit maximizing output in the short run:
Profit maximizing output in the long run:
PURE AND PERFECT COMPETITION: COMPARISON
Perfect Competition vs. Pure Competition
CONCLUSION
Last formatted on February 20th, 2019.

Content: It is possible to come across pure competition in real life but not perfect competition. Structure influences conduct which, in turn, affects performance. Pure competition
Meaning: Pure competition is a market situation where there is a large number of independent sellers offering identical products. It means it is a term for an industry where competition is stagnant and relatively non-competitive. Companies within the pure competition category have little control of price or distribution of products. Pure competition involves-
Very large number
Standardized product
Price Takers
Free entry and exit
A very large number – a very large number of independently acting sellers, e.g., farm product, stock market, foreign exchange market. Standardized product- Identical and homogeneous product. As long as the price is the same, the consumers will be indifferent about which seller they buy the product from
Price taker- Individual firm exert no significant control over the market price. Each firm’s quantity is too small to affect the market supply or price.