Title: Market Forms: Pure Competition, Perfect Competition and Imperfect Competition
Headings: Market Forms: Pure Competition, Perfect Competition and Imperfect Competition
Market Forms: Pure Competition, Perfect Competition and Imperfect Competition
Read this article to learn about Pure Competition, Perfect Competition and Imperfect Competition!
1. Pure Competition:
Pure Competition is said to exist when the following two conditions are fulfilled:
(i) Large Number of Buyers and Sellers:
(ii) Homogeneous Product:
Diagrammatic Representation:
2. Perfect Competition:
The existence of the following conditions in a market will make it a perfect competition market:
(iii) Free Entry or Exit:
(iv) Perfect Knowledge:
(v) Absence of Transport Costs:
(vi) Perfect Mobility of the Factors of Production:
3. Imperfect Competition:
A. Monopolistic Competition:
The main features of monopolistic competi­tion are:
B. Duopoly:
C. Oligopoly:
Monopoly:
Classification of Market Forms:
The following chart shows at a glance different types of market forms on the basis of the nature of competition:
B . Imperfect Competition:
C. Pure or Absolute Monopoly:

Content: Broadly speaking, we have the following market forms. 1. Pure Competition: ADVERTISEMENTS: Pure Competition is said to exist when the following two conditions are fulfilled: (i) Large Number of Buyers and Sellers: The first condition is that there should be operating in the market a large number of buyers and sellers. If that is so, no single producer or purchaser will be able to influence the market price by varying respectively his supply or demand. The output of any single firm is only a small portion of the total output and the demand of any single purchaser is only a small portion of the total demand. Hence, the market price has to be taken as given and unalterable by every purchaser and seller.