what is the difference between perfect competition & pure competition

Dear aspirant. Hope you are doing well. There are types of competition in market.

• Monopoly competition - A monopoly is a dominant position of an industry or a sector by one company, to the point of excluding all other viable competitors. Monopolies are often discouraged in free-market nations. They are seen as leading to price-gouging and deteriorating quality due to the lack of alternative choices for consumers.

• Oligopoly competition - An oligopoly is a market characterized by a small number of firms who realize they are interdependent in their pricing and output policies. The number of firms is small enough to give each firm some market power. Context: ... When all firms are of (roughly) equal size, the oligopoly is said to be symmetric.

• Perfect competition - In economic theory, perfect competition occurs when all companies sell identical products, market share does not influence price, companies are able to enter or exit without barrier, buyers have perfect or full information, and companies cannot determine prices.

Hope it's helpful for you

Thank you

hello sir,

of course perfect competition and pure competition are two different terms , there meanings differ. these terms in respect to economy and market means the following.

in perfect competition , its characterisitics are very strict and constricted , so the existence of this market structure is believed to be a myth. here, the buyers very well know the existing market conditions , they have the perfect knowledge about it. also, in this the factors of production are totally and perfectly mobile.

when we talk about pure comeptition,

the characterisitcs of this are tolerant and unprejudiced as compared to that in perfect competition, so they can be found in real world and sueroundings. here , the buyers and sellers dont have much and appropriate knowledge about the market conditions, we say that they have imperfect knowledge about it. and also the factors of production are immobile , they can not be moved.

hope this helps.

Hello , I hope my answer helps you.

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”.

Pure competition is characterized by the absence of any monopoly element. Features are : a large number of buyers and sellers, homogeneity of products ,freedom of entry and exit for firms

Perfect competition has all these features, and a few additional ones like

every participant in the market possesses perfect knowledge regarding market conditions. Perfectly mobile factors of production, absence of transportation and communication costs.