ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Pure competition is a marketing situation where many sellers offer similar products for similar prices. In pure competition markets, corporations have little control of a product’s price. Pure competition is the opposite of a monopoly, where one company has complete price control because of little competition.

Detailed explanation-2: -In terms of the number of sellers and degree of competition, monopolies lie at the opposite end of the spectrum from perfect competition. In perfect competition, there are many small companies, none of which can control prices; they simply accept the market price determined by supply and demand.

Detailed explanation-3: -Key Takeaways: In a monopolistic market, there is only one firm that dictates the price and supply levels of goods and services. A perfectly competitive market is composed of many firms, where no one firm has market control. In the real world, no market is purely monopolistic or perfectly competitive.

Detailed explanation-4: -According to Chamberlin, pure competition means “competition unalloyed with monopoly elements, ” whereas perfect competition involves “perfection in many other respects than in the absence of monopoly”.