Pure Competition

Pure Competition

• Pure Competition exists when we have :
  • a large number of buyers and sellers
  • a homogenous product
  • free entry and exit
  • perfect information
• In which industries do we have pure competition ?
  • automobile production
  • farming
  • fast food restaurants

How about

janitorial services?

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In the case of automobiles, we have:

few sellersdifferentiated productsdifficult entryimperfect information

In the case of fast food, we have:

differentiated products