Question
Strictly speaking, pure competition is relatively rare. Then why do we study it?
Step 1
Pure competition, also known as perfect competition, is a market structure characterized by a large number of small firms, homogeneous products, perfect information, and no barriers to entry or exit. In this idealized form of market, no single firm can influence Show more…
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Strictly speaking, pure competition has never existed and probably never will. Then why study it?
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