what are the difference between Perfect Competition and Pure Competition?

Hello there

The difference between perfect competition and pure competition is described below:

• Under perfect competition the factor of production is perfectly mobile whereas in the pure competition factor of production is immobile and cannot move from one industry to another.
• In perfect competition the buyers and sellers have the greater and best knowledge about the availability and the prevailing market conditions where is in pure competition the buyers and sellers have do not much knowledge about the market conditions.

Hope it helps!

Thank you!

Hi Grag, hope you are doing well. With regards to your question I hope my answer helps you.

1.Perfect Competition - Factors of production are perfectly mobile.

Pure competition- Factors of production are immobile and can move from one industry to other.

2. Perfect competition - Buyers and sellers have absolute or perfect knowledge of prevailing market conditions.

Pure Competition- Buyers and sellers have imperfect knowledge of existing market conditions.

3. Perfect competition - Existence of this type of market structure is just a myth

Pure competition - This type of market structure is quite liberal and found in real world.

Thanking you

Yours sincerely

Somenath Chattopadhyay

Perfect competition is often distinguished from pure competition, but they differ only in degree. The first four conditions relate to pure competition while the remaining three conditions are also required for the existence of perfect competition. 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”.

The practical importance of perfect competition is not much in the present times for few markets are perfectly competitive except those for staple food products and raw materials.