Differentiate between perfect and pure competetion.
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PERFECT COMPETITION :- In economics specifically general equilibrium theory a perfect market is defined by several idealizing conditions, collectively called perfect competition.
1.Such markets are allocatively efficient , as output will always occur where marginal cost is equal to average revenue i.e. price (MC = AR)
2.In the short-run, perfectly competitive markets are not necessarily productivity efficient as output will not always occur where marginal cost is equal to average cost (MC = AC).
PURE COMPETITION:-Pure competition is a term that describes a market that has a broad range of competitors who are selling the same products. It is often referred to as perfect competition.
1.New companies can easily enter the market.
2.The price of products is determined solely by what consumers are willing to pay.
HOPE IT HELPS
PERFECT COMPETITION :- In economics specifically general equilibrium theory a perfect market is defined by several idealizing conditions, collectively called perfect competition.
1.Such markets are allocatively efficient , as output will always occur where marginal cost is equal to average revenue i.e. price (MC = AR)
2.In the short-run, perfectly competitive markets are not necessarily productivity efficient as output will not always occur where marginal cost is equal to average cost (MC = AC).
PURE COMPETITION:-Pure competition is a term that describes a market that has a broad range of competitors who are selling the same products. It is often referred to as perfect competition.
1.New companies can easily enter the market.
2.The price of products is determined solely by what consumers are willing to pay.
HOPE IT HELPS
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