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: Competitive are price takers, they cannot affect the price, but adjust to it. None of the sellers can ask for a higher price. None will sell at a lower price. Free entry and free exit- New firms can freely enter and existing firms can freely leave the market. No significant, technological, financial, or other obstacles prohibit new firms from selling their output in the market. DEFINITION
The purely competitive markets are used as the benchmark to evaluate market performance. It is generally believed that market structure influences the behavior and performance of agents with in the market. Structure influences conduct which, in turn, affects performance. Pure competition and Monopoly are at each end of the spectrum of markets. In fact probably neither occur in market economies.