ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A theoretical market structure that requires three major conditions: very large numbers of buyers and sellers identical products, and freedom of entry and exit.

Detailed explanation-2: -Pure competition is a theoretical that requires three conditions: very large numbers, identical products, and freedom of entry and exit.

Detailed explanation-3: -Pure Competition Definition In economics, pure competition is a theoretical market structure in which a large number of small firms compete against each other to sell a homogeneous product. The key characteristics of pure competition are: 1. There are many sellers in the market who offer identical products.

Detailed explanation-4: -a marketing situation in which there are a large number of sellers of a product which cannot be differentiated and, thus, no one firm has a significant influence on price. Other prevailing conditions are ease of entry of new firms into the market and perfect market information.

Detailed explanation-5: -Perfect competition is a theoretical situation because it does not reflect the real market as it is difficult to meet the criteria of perfect competition at a market which are as follows: 1-A large number of small firms are present and compete against each other. 2-All small firms produce identical products .