Question

Explain briefly the diffeence between perfectly competitive market and pure market with examples

Answer 1

In Microeconomics,perfectly competitive market and pure market are both segments or types of market competition but with some minor distinctions.

Explanation:

Differences between perfectly competitive market and pure market:-

• Perfectly competitive market is a theoretical or conceptual idea or notion of market structure,whereas,pure or purely competitive market is a more realistic or practical representation of market.
• Pure market does not have any elements of monopolistic characteristics but in contrast,perfectly competitive market has some elements of monopoly market.
• Perfect competition is a theoretical extension of pure market or purely competitive market.Pure market is a model for perfect competition.
• In pure market,transportation and communication costs are involved but in the case of perfectly competitive market,both these costs are ignored.
• Pure competition is characterized by more market related and administrative restrictions than the perfectly competitive market.