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: Therefore, a firm is a price taker rather than the price maker. Homogenous products: The products of all firms in the industries are homogenous. The buyers are unconcerned about the source of the product; no single seller’s product is preferred to that of any other seller. Similarly, sellers also do not care to whom they sell and no preferences among the buyers exist in the market. Homogeneity of the product refers to the “physical characteristics” of the product, such as colour size, etc. and to the “environmental factors”, such as the location of the celler, credit facilities, etc. The products are therefore indistinguishable from one another or are perfect substitutes for one another. This implies that the firm can sell any amount of the product at the prevailing price only.