Title: What is the difference between pure and perfect competition? - Quora
Headings: What is the difference between pure and perfect competition?
What is the difference between pure and perfect competition?
Content: In this messy, imperfect form of competition, you may get high profit margins, but the price to the consumer can fall much lower, because firms can find ways to lower the cost of production using new technology, economies of scale, new production techniques, and the reduction of waste to increase productive efficiency. Under so-called perfect competition, the limit of price reduction enjoyed by the consumer is the cost of production. The price can fall so far, and no farther. Under real-world competition, with economies of scale, unlimited capital investment, and new technology, the cost of production can fall, and the only limit is zero. Everything has some cost of production, so the cost can approach zero, though not reach it. The supposed benefits of perfect competition are small compared to those of actual, real world, free market, entrepreneurial competition. Sponsored by Neat A/B Testing
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