Define the term Pure competition and perfect competition. – InterviewSolution

1.	Define the term Pure competition and perfect competition.
Answer» A firm is said to be operating under conditions of pure competition when there are many firms, producing a homogeneous commodity with freedom of entry and exit, independent decision-making. Perfect competition is said to exist, when besides conditions of pure competition, two more conditions are satisfied, viz (i) there is perfect knowledge of the market conditions among buyers and sellers, and (ii) there is perfect mobility of factors of production.

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