ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In pure competition, there are many manufacturers who supply the same goods to the market. They can’t influence the market price as it’s defined by the total product supply and product demand. Due to a large number of sellers, it’s impossible to reach a general agreement among them so they work independently.

Detailed explanation-2: -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-3: -There are a large number of buyers and sellers in a perfectly competitive market. The sellers are small firms, instead of large corporations capable of controlling prices through supply adjustments. They sell products with minimal differences in capabilities, features, and pricing.

Detailed explanation-4: -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.