Title: Pure Competition: Meaning, Characteristics
Headings: 

Content: It is assumed, there are no market failures, both from externalities and market forces. The following are the main characteristics of pure competition: There are many producers and consumers in the market
Producers and consumers do not have the market power to influence prices
Standard or homogeneous product and is a perfect substitute
There are no entry barriers and exit barriers
Transition costs borne by consumers are zero
Suppliers act as price takers. Number of actors, entry barriers and exit barriers
In a pure competition market, there are many producers and consumers. Each is not enough to influence prices, demand, or supply. In other words, both producers and consumers do not have market power. Low entry barriers are also related to a large number of producers in the market. When a company goes bankrupt, market supply decreases, this will raise prices in the short run. However, due to low entry barriers, any increase in profits will encourage new players to enter. As a result, economic benefits in a pure market do not last in the long run.