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: Pure competition and monopoly are the boundaries and the “real world” (wherever that is) lies somewhere between the two extremes. Pure competition provides the benchmark that can be use to evaluate markets. The physician who attends you knows that 98.6o is a benchmark. Your temperature may not be precisely 98.6o, but if it deviates significantly, that deviation suggests problems. It might be in your best interests to know what the “normal” temperature is and the cause of the deviation from “normal.” CHARACTERISTICS
There are three characteristics of pure competition: Large number of buyers and sellers: There are a large number of buyers and sellers and no one can influence the price of the commodity. A firm produces a small part of the total market output and as such a change in its output will not affect the market supply much. The price is determined by the industry as a whole.