PERFECT COMPETITION PURE COMPETITION

23.     PERFECT COMPETITION
PURE COMPETITION
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

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