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23. PERFECT COMPETITION
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PURE
COMPETITION
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1.
Meaning
Perfect competition is a market
situation where there are large number of buyers and seller. Buying and
selling homogenous products at a single uniform price.
2.
Conditions
Conditions of perfect
competition are
(a)
Large number of buyers and sellers
(b)
Homogeneous product
(c)
Uniform price
(d)
Free entry and Exist
(e)
Perfect Knowledge
(f)
Perfect mobility of production
factors.
(g)
Absence if transport cost
(h)
Absence of Government interference
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It is a market
situation where there are large number of buyers and sellers, trading in
homogeneous products at a single uniform price. But pure competition is only
a part of perfect competition as it fulfils onlycertain conditions of perfect
competition.
Conditions of pure competition are : -
a)
Large number of buyers and
Sellers
b) Homogeneous product
c) Uniform price
d) Free entry and Exist
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PERFECT COMPETITION PURE COMPETITION
